Centre sets terms of reference for 16th Finance Commission

Government extends tenure of Pradhan Mantri Garib Kalyan Ann Yojana for another 5 years

- Rhik Kundu

The union cabinet has approved the terms of reference for the 16th Finance Commission, but is yet to decide on the members of the panel, information and broadcasting minister Anurag Thakur said on Wednesday.

The cabinet, which met on Tuesday night, also extended the tenure of the Pradhan Mantri Garib Kalyan Ann Yojana (PMGKAY) for another five years, starting from 1 January 2024, while allocating another ₹11.8 trillion to the scheme that provides free ration to the poor.

The decision to extend the tenure of the scheme, initiated during the covid-19 pandemic, comes a few months before the general elections.

Under PMGKAY, AAY (Antyodaya Anna Yojana), the poor are entitled to 35 kg of foodgrains per family every month, while priority households get five kg per person per month.

At present, up to 75% of rural and 50% of urban population are covered under AAY and priority households.