The Union Cabinet chaired by Prime Minister Narendra Modi on March 26 extended the Pradhan Mantri Garib Kalyan Anna Yojana (PM-GKAY) scheme for another six months, i.e., till September 2022 (Phase VI).
The Phase-V of the PM-GKAY scheme was to end in March 2022.
This will cover nearly 80 crore beneficiaries across India and like before would be fully funded by the Government of India.
Under the extended PM-GKAY each beneficiary will get an additional 5 kg free ration per person per month in addition to his normal quota of foodgrains under the National Food Security Act (NFSA). This means that every poor household would get nearly double the normal quantity of ration.
The Government had allocated about 759 lakh metric tonnes (LMT) of free foodgrains under the PM-GKAY till Phase V. With another 244 LMT of free foodgrains under this extension (Phase VI), the aggregate allocation of free foodgrains under the PM-GKAY now stands at 1,003 LMT of foodgrains.
The Government has spent approximately Rs. 2.60 lakh crore so far and another Rs 80,000 crore will be spent over the next six months till September 2022, taking the total expenditure under PM-GKAY to nearly Rs 3.40 lakh crore.
“Even though the Covid-19 pandemic has significantly abated and economic activities are gathering momentum, this PM-GKAY extension would ensure that no poor household goes to bed without food during this time of recovery,” says the Ministry of Consumer Affairs, Food & Public Distribution press release.
The PM-GKAY has been under implementation since April 2020, when the fear of the Covid-19 pandemic led the Centre to take this welfare measure. It is the largest food security programme in the world.
This allocation of 244 LMT of foodgrains for PM-GKAY Phase VI is over and above the normal quota under NFSA. Which means the government might have to compromise with its plans of exporting wheat. Besides, the Budget 2022-23 had estimated food subsidy to fall by 28 per cent to Rs 2,06,831 crore against Rs 2,86,469 crore in 2021-22. But with an additional spend of Rs 80,000 crore on PM-GKAY Phase VI, this does not seem likely either.