Weighing in on PMGKAY, the free grains scheme

#GS-02 Social Security, GS-03 Public Distribution System

Pradhan Mantri Garib Kalyan Anna Yojana scheme:

The scheme aimed at providing each person who is covered under the National Food Security Act 2013 with an additional 5 kg grains (wheat or rice) for free, in addition to the 5 kg of subsidised foodgrain already provided through the Public Distribution System (PDS).
Its nodal Ministry is the Ministry of Finance.
It was initially announced for a three-month period (April, May and June 2020), covering 80 crore ration cardholders.
Later it was extended till September 2022.
It was again extended for another 3 months by the government.

The rising debate on the relevance of freebies and its impact on government exchequer.
The Expenditure Department at the Centre did not favour it, citing a funds crunch.
There is also a view saying that such a scheme was no longer needed “in non-pandemic times”.

Government has declared that it wanted to support the poor and the vulnerable during the festival season between October and December.
Policymakers and experts concede that the scheme made a difference to food security and public health during the pandemic.
Both the Parliamentary Standing Committee on Food and Public Distribution and the authors of an IMF-published working paper, “Pandemic, Poverty, and Inequality: Evidence from India” (April 2022), commended the scheme.
The working paper concluded that “the social safety net provided by the expansion of India’s food subsidy program absorbed a major part of the pandemic shock.”

To keep the budgetary allocation under control, rules on quota for rice or wheat can be changed suitably.
There needs to be a transparency study which will be responsible for updating the database of foodgrain-drawing card holders, scrutinising the data critically and zeroing in on the needy.
Using this database, the Centre and States can decide whether the size of the PHHs — nearly 71 crores — can be pruned or not.
In addition, if they feel the need to go beyond the mandate of the NFSA, as is being done under the PMGKAY, they can supply the foodgrains at a reasonable price.