The government is confident in meeting the budgeted 5.9% fiscal deficit target for the current fiscal year, despite the extension of the free ration scheme. Finance Secretary T V Somanathan stated that the decision to extend the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) doesn't deviate from the fiscal consolidation path. The scheme, providing 5 kilograms of free foodgrains monthly to 81.35 crore poor people, was extended for another five years at a cost of approximately Rs 11.80 lakh crore. The fiscal deficit for April-October stood at Rs 8.03 lakh crore, constituting 45% of the full-year budget estimate.
