Ann Yojna: IMF paper lauds India’s ‘Ann Yojna’ for averting extreme poverty | India Business News

Apr 6, 2022

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NEW DELHI: India has averted the rise in excessive poverty via the meals safety scheme, Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY), based on the Worldwide Financial Fund report.
A brand new IMF paper discovered that excessive poverty (lower than PPP USD 1.9 per individual per day) in India is lower than 1 per cent in 2019 and it remained at that degree even in the course of the pandemic 12 months 2020.
Prime Minister Narendra Modi’s meals safety scheme, the Pradhan Mantri Garib Kalyan Anna Yojana, has been important in stopping any enhance in excessive poverty ranges in India in the course of the Covid-19 pandemic, added the report.
The brand new IMF paper, Pandemic, Poverty, and Inequality: Proof from India, introduced estimates of poverty (excessive poverty PPP USD 1.9 and PPP USD3.2) and consumption inequality in India for every of the years 2004-5 via the pandemic 12 months 2020-21.
These estimates embrace, for the primary time, the impact of meals subsidies on poverty and inequality. Excessive poverty was as little as 0.8 per cent within the pre-pandemic 12 months 2019, and meals transfers had been instrumental in making certain that it remained at that low degree within the pandemic 12 months 2020. Publish-food subsidy inequality at .294 is now very near its lowest degree of 0.284 noticed in 1993/94.
A low degree of utmost poverty in two consecutive years, and one together with the pandemic, will be thought of as an elimination of utmost poverty.
The PMGKAY was important in stopping any enhance in excessive poverty ranges in India and the doubling of meals entitlements labored considerably by way of absorbing the Covid-19 induced revenue shocks on the poor, mentioned the IMF report.
In the meantime, PM Modi had introduced the extension of PMGKAY final month until September 2022. Below the PMGKAY, free meals grain is offered to these in want.
The scheme was kickstarted in March 2020 amid the Covid-19 pandemic within the nation and it was prolonged until March 2022 in November final 12 months for 4 months (December 2021-March 2022).
The scheme entails offering 5 kg foodgrains per individual monthly, over and above the common month-to-month NFSA foodgrains.
The profit is being offered to these lined beneath the Nationwide Meals Safety Act (NFSA) [Antodaya Anna Yojana and Priority Households] together with these lined beneath Direct Profit Switch (DBT).
The federal government had in March 2020 introduced the distribution of extra free-of-cost foodgrains (rice/wheat) to about 80 crore Nationwide Meals Safety Act (NFSA) beneficiaries within the wake of the scenario created by Covid-19 in order that the susceptible households don’t endure on account of non-availability of satisfactory foodgrains.
The pandemic shock is basically a short lived revenue shock, mentioned the IMF report, including {that a} short-term fiscal coverage intervention was the fiscally applicable approach to soak up a big a part of the shock.
Consumption progress (an essential determinant of poverty) was discovered to be increased in 2014-19 than the strong progress noticed in 2004-2011.
The paper additionally examined, in some element, the plausibility of the outcomes contained within the NSS client expenditure survey of 2017-18, added report.



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