In order to provide relief to the poor from the after-effects of the prevailing Coronavirus pandemic, the Union Cabinet on Wednesday approved allocation of additional food grains under Pradhan Mantri Garib Kalyan Yojana for another five months.
Subsequently food grains would be provided from July to November 2021 at five rupees per person per month to around 81 crore beneficiaries, who are covered under National Food Security Act.
According to official sources, this move would entail an estimated food subsidy of Rs 64,031 crore. However as the Centre is bearing the entire expenditure of the scheme without any contribution by states, an additional expenditure of about Rs 3,234 crore would be required to be met towards transportation and handling and the margins of fair price shops owners.
Thus, the total estimated expenditure to be borne by the Government will be Rs 67,266 crore.
The allocation in terms of wheat and rice shall be decided by the Department of Food and Public Distribution, official sources added.