No major fiscal impact with free food grains scheme extension

New Delhi The extension of the free food grains scheme, as announced by Prime Minister Narendra Modi, will not have any major fiscal impact in the current as well as the next financial year, government sources said on Monday.

Addressing a public rally in Durg (Chhattisgarh) last week, the Prime Minister announced that his government’s free ration scheme, Pradhan Mantri Garib Kalyan Ann Yojana (PMGKAY), benefiting about 80 crore people, has been extended for next five years. The free food grains scheme was started during the COVID period to provide free rations to nearly 80 crore people to help them tide over the impact of the lockdown. Since then the scheme has continued. Sources in the government said there may not be any major fiscal impact due to the extension of the free food grain scheme during the current fiscal 2023-24 and also 2024-25.