India to Extend Free Food Grains Program with $141 Billion Plan

By siliconindia  |  Friday, 01 December 2023, 08:29:01 AM IST

India to Extend Free Food Grains Program with $141 Billion Plan
India has recently announced a significant allocation of 11.8 trillion rupees ($141.63 billion) for extending its free food grains program for the next five years. According to Information Minister Anurag Thakur, the program is aimed at ensuring food and nutrition security for 813.5 million people, including poor and vulnerable sections of the population. Previously, Prime Minister Narendra Modi's government had declared the extension of the welfare scheme, which was set to conclude in December, for an additional five years.
The decision, approved in a recent cabinet meeting, underscores the commitment to fortify food security and alleviate financial challenges for the marginalized segments of society. The ambitious initiative comes just ahead of the upcoming general elections in early 2024. "Free food grains will strengthen food security and mitigate any financial hardship of the poor and vulnerable sections of the population", stated the government in response to the decision.
Despite the financial commitment, the government is confident about achieving its fiscal deficit target for the current financial year. Ajay Seth, the Economic Affairs Secretary, has expressed his confidence in maintaining fiscal discipline while allocating resources to crucial social welfare programs. While addressing a separate event, Seth assured that the government is on track to meet its fiscal deficit target of reducing it to 5.9 percent of gross domestic product (GDP) for the fiscal year ending in March.
The Indian government is committed to fiscal responsibility and has adopted a broader strategy to reduce the fiscal deficit to 4.5 percent of GDP by the fiscal year 2025-26. The government's disciplined approach to fiscal management is aimed at balancing social welfare initiatives with fiscal prudence, which is necessary to ensure sustainable economic growth.

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