Cabinet extends Pradhan Mantri Garib Kalyan Ann Yojana scheme by another 4 months, additional food subsidy estimated at Rs53,344.5cr

The total outgo in terms of food grains for PMGKAY Phase V is likely to be about 163 LMT.

Nov 25, 2021 10:11 IST India Infoline News Service

The Union Cabinet has approved the extension for the  Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY-Phase V) for a  period of another 4 months i.e. December 2021 till March 2022 @ 5 kg per person per month free of cost for all the beneficiaries covered under the National Food Security Act (NFSA) including those covered under Direct Benefit Transfer (DBT).

The PMGKAY scheme for Phase V from December 2021 till March 2022 would entail an estimated additional food subsidy of Rs53,344.52cr. The total outgo in terms of food grains for PMGKAY Phase V is likely to be about 163 LMT.

Phase-I and Phase-II of this scheme were operational from April to June 2020 and July to November 2020 respectively. Phase-III of the scheme was operational from May to June 2021. Phase-IV of the scheme is currently operational for July-November, 2021 months.

It may be recalled that in the wake of economic disruptions caused by the unprecedented outbreak of COVID-19 in the country last year, the Government in March 2020 had announced the distribution of additional free-of-cost foodgrains (Rice/Wheat) to about 80 Crore National Food Security Act (NFSA) beneficiaries at the scale of 5 Kg per person per month under the PM Garib Kalyan Anna Yojana (PM-GKAY), over and above the regular monthly NFSA foodgrains i.e., regular entitlements of their ration cards, so that the poor, needy and the vulnerable households/beneficiaries do not suffer on account of non-availability of adequate foodgrains during the times of economic crisis. So far, under the PM-GKAY(phase I to IV) the Department had allocated a total of almost 600 LMT foodgrains to the States/UTs equivalent to about Rs2.07 Lakh cr in food subsidy.

The distribution under PMGKAY-IV is presently ongoing, and as per the reports available from States/UTs so far,  93.8% foodgrains have been lifted and nearly 37.32 LMT (93.9% of July’21), 37.20 LMT (93.6% of Aug’21), 36.87 LMT (92.8% of Sept’21), 35.4 LMT (89% of Oct’21) and 17.9 LMT ( 45% of Nov’21) foodgrains have been distributed to about 74.64 Crore, 74.4 Crore, 73.75 Crore, 70.8 Crore and 35.8 crore beneficiaries respectively.

Going by the experience of earlier phases, the performance of PMGKAY-V is also expected to be on the same high level as achieved before.

Overall, the government will be incurring an expenditure of nearly Rs.2.60 lakh Crore in PMGKAY Phase I- V.

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