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Free foodgrain policy to cost over ₹67,000 cr
Free foodgrains under the PM Garib Kalyan Anna Yojana (PMGKAY) were introduced last year during the first wave of the pandemic. It was resumed during May and June this year.
he Union government’s decision to offer free foodgrains to vulnerable sections of the society is expected to cost more than ₹67,266 crore to the exchequer.
The Union cabinet on Wednesday cleared the plan, announced earlier this month by Prime Minister Narendra Modi, to extend the free foodgrain programme till November.
Free foodgrains under the PM Garib Kalyan Anna Yojana (PMGKAY) were introduced last year during the first wave of the pandemic. It was resumed during May and June this year.
Modi said in his address to the nation on June 7 that the scheme will be extended till Diwali.
The scheme will benefit up to 813 million people covered under the targeted public distribution system. Each individual will receive 5 kilograms of foodgrains for five months with the cost borne by the Centre.
The total cost of ₹67,266.44 crore towards the five-month extension includes the transportation cost of ₹3,234.85 crore, according to an official statement. “Additional allocation will ameliorate the hardships faced by the poor due to economic disruption caused by the Covid-induced pandemic,” said the statement.
The free foodgrain supply is over and above the monthly entitlement of subsidised foodgrains under the food security law. It will cover up to three-fourths of the rural population and half of the urban population.
After announcing the FY22 Union budget with a focus on higher capital spending and healthcare initiatives, including vaccination, the government has been seeking to spend the allocated funds in the initial part of the year to spur economic activity hit by the disruptions.
The cabinet also cleared the merger of Central Warehousing Corp. (CWC with unit Central Railside Warehouse Company Ltd (CRWC) with an aim to improve efficiency, capacity utilisation and financial savings, said another statement.
The move will lead to the transfer of all assets, liabilities, rights and obligations of CRWC to CWC. The merger will unify similar functions of both companies such as warehousing, handling and transportation under a single administration, said the statement. This will promote efficiency, capacity utilisation, transparency, accountability and ensure financial savings, the statement said, adding that the merger is expected to be completed within eight months.
The step will also facilitate building at least 50 more railside warehouses and is likely to generate job opportunities equivalent to 36,500 man-days for skilled workers and 912,500 man-days for unskilled workers.
The Centre also decided on Wednesday to sign a deal with Caribbean island nation Saint Vincent and The Grenadines for cooperation in tax matters.
The deal provides for the exchange of information and assistance in tax collection. One key feature of the deal is that the treaty partners will allow representatives of the other country to enter its territory to interview individuals and examine records for tax purposes.
