The Modi government can extend the Free Ration Scheme till June 2024. Under the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY), which provides free ration to the poor of the country, 80 crore people of the country are provided free ration. According to the news published in the Financial Express, the central government is considering extending this scheme in view of the general elections next year. According to government officials associated with this, PMGKAY can be expanded. However, this decision will be taken by the Cabinet headed by the Prime Minister.
It will cost Rs 12,500 crore
The six-month extension of PMGKAY will cost the government around Rs 12,500 crore. The continuation of the scheme means that the central government will not charge Rs 3 per kg for rice and Rs 2 per kg for wheat from the beneficiaries. Under the National Food Security Act (NFSA), the government provides 5 kg of wheat/rice per person per month. Also, families covered under the Antyodaya Anna Yojana (AAY) get 35 kg of food grains per month.
It cost about Rs 3.91 trillion
In December last year, the government decided not to extend the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) (beyond 2022), under which it was giving 5 kg of additional rice/wheat to each of the 80 crore beneficiaries. PmGKAY cost the state exchequer about Rs 3.91 trillion since its launch in April 2020 amid the first Covid-19 wave. Food subsidies are projected to decline by 30% to Rs 1.97 trillion in FY24 from Rs 2.81 trillion in FY23.
