Govt may extend free food scheme, expand fuel subsidy

The government may continue providing free food grains to over 813 million underprivileged Indians even after the December 31, 2023 deadline for the popular scheme, and could extend the annual fuel subsidy up to ₹2,400 per beneficiary to about 96 million households beyond the current financial year because of both economic and political reasons ahead of the 2024 general elections, two people aware of the development said on Monday.

- Rajeev Jayaswal

The cabinet, chaired by Prime Minister Narendra Modi, on December 23, 2022 decided to provide free food grains to about 81.35 crore (813.50 million) beneficiaries under the National Food Security Act (NFSA) "for one year" from January 1, 2023.

"The government is closely monitoring the food inflation situation and, if required, the benefit could be extended beyond the one-year period, with or without any modification in the scheme," one of the people cited above said.

The people said the government is also committed to shielding the underprivileged from rising prices of cooking gas (domestic LPG). The government has been providing a targeted subsidy of 200 per 14.2kg cylinder to Pradhan Mantri Ujjwala Yojana (PMUY) beneficiaries for up to 12 refills a year for 2022-23 and 2023-24. This deadline could also be extended if cooking gas prices continue to remain high, they said.