The government is confident in meeting the budgeted 5.9% fiscal deficit target for the current fiscal year, despite the extension of the free ration scheme. Finance Secretary T V Somanathan stated that the decision to extend the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) doesn t deviate from the fiscal consolidation path. The scheme, providing 5 kilograms of free foodgrains monthly to 81.35 crore poor people, was extended for another five years at a cost of approximately Rs 11.80 lakh crore. The fiscal deficit for April-October stood at Rs 8.03 lakh crore, constituting 45% of the full-year budget estimate.
The extension of the scheme will be implemented starting January 1, 2024. Government Cabinet Extends PMGKAY Scheme for Another Five Years From January 1, 2024.
The government has extended the PMGKAY scheme to provide 5 kg of free foodgrains per month to 81.35 crore poor for another five years that would cost the exchequer about Rs 11.80 lakh crore.