homeeconomy NewsGovt weighing options for Pradhan Mantri Garib Kalyan Anna Yojana extension: Sources
Govt weighing options for Pradhan Mantri Garib Kalyan Anna Yojana extension: Sources
The call on extending the PMGKAY scheme would be taken at the highest level and the government is well-placed with regards to grain stock for any extension of the scheme, the sources said.
The government is weighing options if the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) needs to be extended, people in the know of the matter told CNBC-TV18. The call on extending the PMGKAY scheme would be taken at the highest level and the government is well-placed with regards to grain stock for any extension of the scheme, the sources said.
The Cabinet on September 28 had approved the extension of PMGKAY by three months. The additional outlay on the extension is seen over Rs 40,000 crore.
The scheme was launched in March 2020 to provide free 5 kg foodgrains per person per month to around 800 million beneficiaries to cope during COVID-induced lockdowns. The scheme has been extended numerous times and was set to expire on September 30.
A three-month extension of the scheme would cost an additional Rs 40,000 crore, the sources added. The Finance Ministry has raised fiscal concerns over the scheme's extensions.
The scheme got an extension in September despite the Finance Ministry not being in favour as it adds pressure on a budget deficit.
Under the scheme, Rs 3.91 lakh crore has been spent in 28 months.
The government has said that there is sufficient food grain stocks to meet the National Food Security Act (NFSA) requirements, as well as additional allocation under the PMGKAY scheme.
Adequate quantity of food grains would be available by January 1, 2023. The availability of wheat and rice would be well above the buffer norms and wheat production and procurement shall remain normal, the government has said.
There has been a fair rise in sowing of wheat crop as compared to the last year. As much as 159 LMT of wheat is supposed to be available on January 1, 2023 compared to the 138 MLT buffer norm and 104 LMT rice is to be available compared to the 76 LMT buffer.
The NFSA, PMGKAY allocations have been revised in favour of rice, to have sufficient wheat stock. The next procurement of wheat would commence on April 2023.
First Published: Dec 19, 2022 4:11 PM IST
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