Scheme is Not Enough

Context:The recent step taken by the government are inadequate to provide inclusive food ration to the vulnerable sections. Expansion and universalisation of such welfare schemes is essential to tide the crisis.

Recent Steps by Central and State Government: 

• PM’s Garib Kalyan Anna Yojana – Extended the free food grains for 800 million Indians till November.
• The Finance Minister has allocated an additional Rs 40,000 crore for the MGNREGA. 
• Some states such as Tamil Nadu, Telangana, Himachal Pradesh and Odisha have universalised or expanded PDS coverage with their own funds. 
• West Bengal’s Chief Minister has promised free rations till June 2021.

Unprecedented challenge: 

• Exclusion Error: Economists estimate that 100 million names have not been updated in NFSA lists since it was enacted. 

• Under PM’s Garib Kalyan Anna Yojana only NFSA ration cards holder will receive double rations.
• Process of selection of beneficiaries: linkage with Aadhaar has deprived scores of genuine beneficiaries.

• Inefficient Distribution: The food ministry has uniformly increased coverage by 10 per cent for all states, irrespective of their levels of out-migration or in-migration. 

• Non-utility of One Nation One Ration Card: Due to its dependence on Aadhar based biometric system, several states have discontinued biometric authentication at ration shops in fear of COVID spread.  

• Deprived of liquidity: 

• The PM has not extended cash transfers in Jan Dhan bank accounts of 200 million women.
• 80% of the elderly, differently abled and widows are excluded from these central pensions (National Social Assistance Programme pensioners). 

• Inadequate Work: The demand for work has reportedly surged for MGNEREGA, E.g. it surpassed more than half of annual budget in Telangana.

Way Forward: Increase the guaranteed employment to 200 days per year for all households nationwide and boost wages for the people forced to live under minimum stipulated wage.