Cabinet clears Rs 11.8 lakh cr scheme for free foodgrain to poor

New Delhi: The Union Cabinet has approved the extension of the Pradhan Mantri Garib Kalyan Ann Yojana (PMGKAY) to provide free foodgrain to the poor for another five years at a cost of Rs 11.8 lakh crore.

Addressing a press conference here, Union Information and Broadcasting Minister Anurag Thakur said on Wednesday that the Centre is extending the PMGKAY scheme to provide 5 kg of free foodgrain per month to 81 crore poor people for another five years, effective from January 1, 2024.

The Minister also announced that PM Janman scheme has been approved which will cost Rs 24,100 crore out of which Rs 15,300 crore will be funded by Centre and remaining by states.

The scheme will provide basic facilities including housing, road connectivity, piped water, mobile medical units, solar street lighting, mobile towers.

The scheme will be implemented in 18 states and is expected to benefit 28,16,000 tribals.

Thakur also said that proposal for setting up the 16th Finance Commission has been been cleared and the terms of reference include share of central taxes between Centre and states.

The 16th Finance Commission will be for the period of five years from April 1, 2026-31.

He said there will no shortage of funds or food for Garib Kalyan Anna Yojana for over five years. The scheme will cost the government nearly Rs 11.8 lakh crore over the next five years, but he emphasised that this amount is not a fixed number.

Thakur referred to this is an effort by the Prime Minister to ensure the poor people have food security and don't have to worry about their basic needs.