Karnataka government will offer cash compensation

The Karnataka government plans to offer cash compensation ration card holders for the extra 5 kg of rice each month, despite the Centre’s refusal to purchase more rice for the welfare program. The additional 5 kg is eligible for the revised distribution of 10 kg under the Anna Bhagya scheme will be covered in cash. The Scheme will cost the state around Rs. 750 crores each month, with beneficiaries receiving Rs 170. The government has accused the BJP of politicizing welfare initiatives.

Karnataka Government Will Offer Cash Compensation

After the Centre denies BPL families access to grain, the Karnataka government will compensate them financially
Payout will cost the government approximately Rs. 750 crore each month.

Karnataka State’s beneficiary scheme

The Karnataka government announced on Wednesday that it would compensate ration card holders who were entitled to the extra 5 kg of rice each month with cash deposited into their bank accounts, circumventing the Centre’s refusal to purchase more rice for the welfare program that received total funding by the state.

Anna Bhagya scheme

Since the state administration already provides each beneficiary with 5 kg of free rice, the cash reimbursement will be for the additional 5 kg they are eligible for under the revised distribution of 10 kg under the Anna Bhagya scheme.
The decision to use cash payments as a temporary solution until the state can secure sufficient quantities of rice came at a Karnataka cabinet meeting that discussed the issue of the non-supply of additional rice.
The Congress committed to providing 10kg of rice per month under the Anna Bhagya scheme to every person in need as one of the five guarantees made public before the Assembly elections earlier this year.

state government will bear a cost of approx. Rs. 750 crores each month

Each beneficiary, including those living below the poverty line and Antyodaya recipients, will receive Rs 170 per month (34 x 5, or Rs 34, the price per kilo of rice the FCI sells to the states, fewer transportation costs). The monthly fee of the payout to the exchequer would be around Rs 750 crore.

CM Siddaramaiah stated that the Union government tried to vandalize welfare initiatives

Siddaramaiah, the chief minister, charged that the Centre tried to sabotage welfare initiatives for the underprivileged. “The central government has enough rice, but they are still trying to thwart our plan. It’s treachery by the national government,” he informed the media after the cabinet meeting.
“There are BJP leaders from Karnataka, right? It is a poor people’s plan. Don’t oppose such programs for the underprivileged, and avoid hatred-based politics,” he advised.

Shivakumar blamed the center for recreating politics

Deputy CM DK Shivakumar accused the government of playing politics with welfare initiatives. “The BJP’s national leadership is merely playing politics with the underprivileged. We are devoted to paying the rice price per the government rate,” Shivakumar stated.

K.H. Muniyappa met Piyush Goyal

K.H. Muniyappa, the state’s minister of food and civil supplies, recently met Piyush Goyal, the union minister for consumer affairs, food, and public distribution, in Delhi in a final attempt to satisfy the launch deadline. The attempt has not yet produced any results.

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