The Central Government has decided to extend the free ration scheme by three months. This is the scheme’s seventh extension. Announcing this, Anurag Thakur, the Minister for Information and Broadcasting, said: “The tenure of the Pradhan Mantri Garib Kalyan Anna Yojana (PM-GKAY) is being extended till December 2022. In the next three months, around ₹ 44,000 crore will be spent under this scheme.”
During the Covid-19 pandemic in 2020, the scheme was launched. The initiative provides 5 kg of free food grains per person per month to the poor. This latest extension will cost the government Rs 44,762.07 crore.
The decision to extend the free ration scheme, which was set to expire on September 30, was made in light of the upcoming holiday season. However, political observers say the scheme has aided the BJP, and with elections in Gujarat and Himachal Pradesh scheduled later this year, the decision to extend it may have been influenced by political considerations.
Extending the free ration scheme
Making the announcement, the Information and Broadcasting Minister said: “This will bring smiles to the faces of the poor.” Thanking Prime Minister Narendra Modi for extending the free ration scheme, Piyush Goyal, Union Minister of Commerce and Industry, tweeted: “This scheme is ensuring that the stove of every poor is kept burning and about 80 crore citizens continue to get food grain.”
The decision to extend the free ration scheme, which was set to expire on September 30, was made in light of the upcoming holiday season. However, political observers say the scheme has aided the BJP, and with elections in Gujarat and Himachal Pradesh scheduled later this year, the decision to extend it may have been influenced by political considerations.
According to the Union Finance Ministry, extending the scheme will add a burden of 45,000 crore to the national exchequer. According to sources, the ministry recommended that the quantity of food grains provided under the scheme be reduced due to the increased financial liability, but the government is likely to continue with the drive in its current form.
The Finance Ministry also stated that the extension of the free ration scheme would put the ministry under additional financial strain due to the ongoing Russia-Ukraine war and other subsidies already in place. This initiative has cost approximately 2.6 lakh crore in the last two years.
When India declared a state of emergency due to the Covid-19 pandemic in March 2020, the Centre launched the PM-GKAY to provide free 5 kg of food grains per person per month to more than 80 crore beneficiaries covered by the National Food Security Act (NFSA).
The additional free grains are provided in addition to the normal quota provided by the NFSA at a heavily subsidised rate of 2-3 per kg.
