Govt mulls cutting Anna Bhagya quota

The B S Yediyurappa administration is looking to cut supply of free rice under the Congress’ populist Anna Bhagya scheme, which is among several expenditure-pruning measures proposed to mobilise funds to give farmers additional incentives under the PM-KISAN scehme.

Yediyurappa has announced that the government will give Rs 4,000 yearly to over 34 lakh farmers, in addition to Rs 6,000 they will receive under the PM-KISAN scheme. For this, the government needs Rs 2,200 crore.

According to a note prepared by the Finance department, the government can save an estimated Rs 500 crore by reducing the supply of free rice to ration card holding (BPL) households from 7 kg to 5 kg, and stopping the supply of 1 kg dal (togari) at a subsidised rate of Rs 38 per kg.

This has angered the Congress because Anna Bhagya was former chief minister Siddaramaiah's flagship scheme.

The department has also proposed halting the ‘Raitha Kanaja’ scheme worth another Rs 500 crore announced by the previous H D Kumaraswamy-led Congress-JD(S) coalition.

The department has pointed out that Rs 134 crore has been provided to the Department of Backward Classes Welfare for the development of various communities.

“A special package of Rs 150 crore has been announced for pomegranate and grape growers in Vijayapura and another Rs 150 crore has been announced to set up processing units for agricultural produce,” the note states.

“Also, if the chief minister approves reviewing of projects announced for various departments, we can make the necessary attempt to mobilise funds required for the PM-KISAN scheme,” it says.

Yediyurappa’s announcement to give farmers Rs 4,000 from the government’s kitty has no budgetary provision, forcing authorities to reprioritise expenditure. Last year, Kumaraswamy used Rs 3,500 crore that Siddaramaiah had earmarked for a farmers’ income assistance scheme to fund the crop loan waiver scheme. “We will not allow our schemes to be withdrawn or cancelled,” Congress’ former minister D K Shivakumar warned.

Additional Chief Secretary (finance) I S N Prasad told DH that no decision had been taken on the proposed measures. “It’s a note prepared by our deputy secretary, which somehow got out,” he said. “Many departments don’t spend money. So, it can be adjusted,” he said.