India has announced a substantial allocation of 11.8 trillion rupees ($141.63 billion) to extend its free food grains program for the next five years, as confirmed by Information Minister Anurag Thakur. The program, designed to ensure food and nutrition security for 813.5 million people, will cater to the needs of the poor and vulnerable sections of the population. Prime Minister Narendra Modi’s government had previously declared the extension of the welfare scheme, originally slated to conclude in December, by an additional five years.
The decision, which received approval in a recent cabinet meeting, underscores the government’s commitment to fortify food security and alleviate financial challenges for the marginalised segments of society. This ambitious initiative comes just ahead of the upcoming general elections in early 2024.
The government, in response to the decision, stated that “Free food grains will strengthen food security and mitigate any financial hardship of the poor and vulnerable sections of the population.”
Despite the substantial financial commitment, the government remains optimistic about achieving its fiscal deficit target for the current financial year. Economic Affairs Secretary Ajay Seth, as reported by Reuters, expressed confidence in maintaining fiscal discipline while allocating resources to vital social welfare programs.
Ajay Seth, addressing a separate event, assured that the government is on track to meet its fiscal deficit target of reducing it to 5.9 per cent of gross domestic product (GDP) for the fiscal year ending March 31.
This commitment to fiscal responsibility is part of a broader strategy, with India aiming to further reduce the fiscal deficit to 4.5 per cent of GDP by the fiscal year 2025-26. This disciplined approach to fiscal management demonstrates the government’s intent to balance social welfare initiatives with fiscal prudence, emphasizing a commitment to ensuring sustainable economic growth.
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