No major fiscal impact on extension of free food grains scheme for next 2 years: Sources

New Delhi: The extension of the free food grains scheme, as announced by Prime Minister Narendra Modi, will not have any major fiscal impact in the current as well as the next financial year, government sources said on Monday.

Addressing a public rally in Durg (Chhattisgarh) last week, the Prime Minister announced that his government's free ration scheme, Pradhan Mantri Garib Kalyan Ann Yojana (PMGKAY), benefiting about 80 crore people, has been extended for next five years.

The free food grains scheme was started during the COVID period to provide free rations to nearly 80 crore people to help them tide over the impact of the lockdown. Since then the scheme has continued.

Sources in the government said there may not be any major fiscal impact due to the extension of the free food grain scheme during the current fiscal 2023-24 and also 2024-25.

Meanwhile, the sources also said investment from Canada in India is unlikely to see any decline due to diplomatic row.

The ties between India and Canada came under strain following Trudeau's allegations in September over the killing of Khalistani separatist Hardeep Singh Nijjar in June in the Canadian town of Surrey.