Business Desk, AnyTV, New Delhi
Published by: Ajay Singh
Updated Fri, 24 Jun 2022 12:29 PM IST
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The distribution of free ration under the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) in the state was considered a major reason for the BJP’s victory in the Uttar Pradesh assembly elections. Are preparations underway to discontinue this scheme now? According to media reports, such discussions have started after a plea by the Department of Expenditure, Ministry of Finance. The Department of Expenditure has warned that the continuation of PMGKAY beyond the month of September and any reduction in tax may have a negative impact on the fiscal position of the central government.
The scheme was started in the lockdown due to Corona
The government had launched the PMGKAY scheme across the country to provide free ration to the poor people during the lockdown imposed due to the Corona epidemic. In March this year, the scheme was given an extension of six months.
According to an ET report, the central government has made a provision of Rs 2.07 lakh crore for food subsidy in the current financial year, while by September, the subsidy bill is expected to increase to around Rs 2.87 lakh crore due to distribution of free food grains under PMGKAY. . In such a situation, if the government extends PMGKAY for the next 6 months after September, then it will put a burden of Rs 80,000 crore on the exchequer and in that case the food subsidy is expected to increase to Rs 3.7 lakh crore in the year 2023.
Tax cuts will also increase trouble
The Department of Expenditure, Ministry of Finance, in an internal note, has mentioned that due to extension of time of tax deduction and food subsidy, it will have an adverse effect on the exchequer. It has also been said in the media reports that whether on the basis of food security or on the basis of the condition of the financial position, in no case extension of the PMGKAY can be advised in the present circumstances. Now in such a situation, the big question has arisen that whether the government will stop the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) after September?