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Finance Ministry Not In Favour Of Extending PM Garib Kalyan Anna Yojana Tenure Further

PM Garib Kalyan Anna Yojana: The Department of Expenditure (Department...

PM Garib Kalyan Anna Yojana: The Department of Expenditure (Department of Expenditure) of the Ministry of Finance has warned the government about the extension of the term of Pradhan Mantri Garib Kalyan Anna Yojana. In fact, the Modi government has extended the duration of this scheme from 31 March 2022 to 30 September. And it is being speculated that in view of the assembly elections to be held in Gujarat and Himachal Pradesh at the end of the year, the term of the plan can be extended. But the Department of Expenditure is not in favor of extending this scheme further. According to the Department of Expenditure, if the term of this scheme is extended, then it will have to face serious consequences. The fiscal deficit of the government could be uncontrollable.

increased burden on the exchequer of the government
In fact, in the current financial year 2022-23, the government had made a provision of only 2.07 lakh crore for food subsidy. Then the Pradhan Mantri Garib Kalyan Yojana was only till 31 March 2022. But if the government extended the duration of the scheme till September 30, then the government’s food subsidy bill is estimated to increase by Rs 80,000 crore. If the government extends the duration of this scheme for another 6 months, then in 2022-23, the government will have to spend Rs 3.70 lakh crore on food subsidy i.e. Rs 1.63 lakh crore more than the budget estimate. Whereas in 2021-22, the government had to spend Rs 2.86 lakh crore on food subsidy. 0

Budget spoiled by reducing tax and increasing subsidy expenditure
In fact, the concern of the Finance Department is that if the government cuts any tax in future or gives extension to the Prime Minister’s Garib Kalyan Anna Yojana, it may mess up the government budget. Therefore, the Department of Expenditure has suggested not to extend the duration of the scheme. It has been said in the note of the expenditure department that extension of PM Garib Kalyan Anna Yojana, increase in fertilizer subsidy by Rs 1.10 lakh crore, reduction in excise duty on petrol diesel causing a loss of Rs 1 lakh crore and Rs 200 The re-introduction of LPG subsidy and reduction of custom duty on cooking oil has had a negative impact on the government’s budget.

The government has set a fiscal deficit target of 6.4 per cent in 2022-23. That is, a rating agency like Fitch is projecting a fiscal deficit of 6.8 percent. In its Monthly Economic Review for the month of May, the Department of Economic Affairs of the Ministry of Finance has said that due to the increase in fiscal deficit, the current account deficit is also expected to increase. Also, extending the Pradhan Mantri Garib Kalyan Anna Yojana is not appropriate from the point of view of food security.

What is PM Garib Kalyan Anna Yojana
PM Garib Kalyan Anna Yojana is an ambitious scheme of the Modi government which provides free food to 80 crore people. The Modi government had brought this scheme with the aim of providing food to the people during the lockdown due to Corona epidemic. Under this scheme, 5 kg of free rice or wheat, 1 kg of gram is given to more than 80 crore people. This is in addition to the subsidized ration under the National Food Security Act. That is, 50 kg of food grains are given to a beneficiary family consisting of 5 persons. In which 25 kg is provided for free and 25 kg wheat is provided at the cost of Rs 2 or chaav 3.

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