Centre
may extend free foodgrain scheme
Assembly
polls in Himachal, Gujarat in mind
The Modi
government is keen to extend the Pradhan Mantri Garib Kalyan Anna Yojana
(PMGKAY) providing free food grains to over 80 crore people for another three
months. The scheme, which started a couple of years ago due to Covid, is ending
on September 30.
The proposal is
engaging the government’s attention as it will have serious financial
implications on the Exchequer. If extended for another three months, it may
cost around Rs 56400 crores extra. The Finance Minister, Nirmala Sitharaman is
on record to say that the PMGKY would cost around Rs 2,27,841 crore in a full
year.
The foodgrain
stocks are sufficient at the moment at 60 million tones. But massive floods in
many states and less rainfall in Punjab & Haryana etc, may lead to less
production and procurement. The
government’s finances are already under pressure to bring down prices of
essential commodities and the geopolitical situation.
However, the
BJP leadership wants the scheme to be extended at least until December as
Assembly polls are due to be held in Himachal Pradesh (November) and Gujarat
(December) this year. The BJP leaders are of the view that discontinuation of
the scheme meant for 80 crore people during elections in two states, may send a
wrong signal. Under the scheme, 5 kg of food grains is provided free of cost to
81.35 crore beneficiaries.
It is learnt
that the Prime Minister will take a final political call after his return from
the SCO Summit. The government’s subsidy bill on account of food, fertilizer
and cooking gas has already shot up alarmingly. The Department of Expenditure
in the Finance ministry is averse to extending the free foodgrain scheme due to
rising fiscal deficit. There is a possibility that a few riders may be added
while extending this scheme to bring down the subsidy bill. The growth in
direct & indirect revenue collections every quarter may make the
government's task easier.
