Take a look at the polls: free ration diet to stay until exercise 22

As for the distribution of cereals under PMGKAY-IV in the period July-November, 94% of food cereals were raised.

Even though the Covid-19 pandemic appears to have subsided at least for now, the Center has decided to continue the free rationing program – Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) – until the end of the current fiscal year . It will take an additional Rs 53,345 crore to run the program through March, which will bring its total fiscal cost in FY 22 to a considerable crore of Rs 1.47 lakh.

Opposition parties have called for aid to be extended to the weaker sections; elections in five states, including Uttar Pradesh, Uttarakhand and Punjab, scheduled for February-March, have also reportedly weighed on the government’s mind.

PMGKAY was first deployed as a full relief program in March 2020, “to reach out to the poorest of the poor” and “help them fight Covid-19”. The program, initially launched for the period April-June, was then extended until the end of November; Following the second wave of the pandemic, it was reintroduced in May of this year and was expected to remain in effect until the end of this month.

Each beneficiary family is entitled to 5 kg of wheat or rice and 1 kg of favorite legumes free of charge; in all, about 80 crore people benefit from it.

In fiscal year 21, Rs 1.34 lakh crore was spent on PMGKAY. The food subsidy allocation for FY22 (BE) is Rs 2.43 lakh crore. After taking into account savings in the amount of Rs 60,000 crore due to the clearing of invoices due in FY 22 in March 2021 (FY21), the Center is expected to provide Rs 87,000 crore against the BE to cover the cost of PMGKAY in fiscal year 22.

As for the distribution of cereals under PMGKAY-IV in the period July-November, 94% of food cereals were raised.

Food subsidy expenditure in FY21 was Rs 5.25 lakh crore, Rs 1 lakh crore more than the revised estimate (RE). As part of cleaning up its balance sheet, the Center last year paid off huge arrears of debt from the Food Corporation of India (FCI), which has resulted in increased budget food subsidies.

Outside of PMGKAY, government outreach to farmers under the flagship PM-Kisan program, launched in February 2019, is estimated at Rs 65,000 crore in FY 22, almost the same as in fiscal year 22. year 21. Under the program, each beneficiary farmer is to receive Rs 6,000 each year in three equal installments as direct income support. Initially, the program was supposed to cover only small and marginal farmers, but later it was extended to all landowning farmers with certain exclusion criteria estimated at 14 crore. However, the current recipients are around 11 crore.

Even with the additional budgetary cost of PMGKAY, the Center is likely to stick to the budgeted budget deficit target of 6.8% of GDP for fiscal year 22.

The spending restraints probably saved Rs 1 lakh crore in fiscal year H1FY22. In addition, the Centre’s net tax revenue would exceed the budgetary target by around Rs 1.5 lakh crore in FY22. These would be sufficient to cover the additional budgetary cost of the stimulus measures announced by the government until ‘now, which is around Rs 2.5 lakh crore.

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