FinMin opposed extension of PMGKAY a day ahead of Cabinet approval

Office memorandum flagged fiscal concerns due to impact of Ukraine war on fuel prices. With Covid-19 having largely subsided, reasons for which earlier extensions were given no more seem to hold

A day before the Cabinet approved the extension of Pradhan Mantri Gareeb Kalyan Anna Yojana, an office memorandum (OM) from the Finance Ministry’s Department of Expenditure, started doing the rounds of social media. In it was laid out the department’s objections to the extension.

The OM is confirmed to be authentic. Signed by Rabi Ranjan, a deputy director in the department, it said the financial implication of Rs 44,762 crore was a substantial one.

“Moreover, the financial implication mentioned in the letter is based on the economic cost of food grains. However, even if the open market sale price of