Cash transfer for Anna Bhagya 2.0 scheme to begin Monday
The launch of the Anna Bhagya scheme in Karnataka sparked controversy as Siddaramaiah criticised the Central government for disrupting the program by halting grain sales from the Food Corporation of India to state governments.
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Anna Bhagya 2.0, one of the state government's five poll promises, guarantees five kilograms of free rice per month to each member of a Below Poverty Line (BPL) household. (Representational Photo) In a move to ensure continued support for the Anna Bhagya scheme, the Karnataka Congress government will commence direct cash transfers on Monday. This alternative method was adopted after the Central government suspended the sale of rice and wheat to state governments earlier this year.
Anna Bhagya 2.0, one of the state government’s five poll promises, guarantees five kilograms of free rice per month to each member of a Below Poverty Line (BPL) household. Consequently, BPL households will now receive a total of 10 kilograms of rice per person each month, with five kilograms supplied by the Central government.
According to the Chief Ministers’ Office, Karnataka has 128 million ration cardholders who are eligible for the cash transfer. The government will transfer Rs 34 per kilogram of rice, equivalent to Rs 170 per person per month, in exchange for the rice. These funds will be deposited into the bank accounts linked to the Aadhaar numbers of the BPL family heads.
Of the ration cards, 99 percent are linked with Aadhaar numbers, and 82 percent (106 million) of these cards are connected to active bank accounts. The cash transfer process will begin for these cardholders, as stated in a release from the CMO.
For the remaining ration cardholders, instructions will be provided to open new bank accounts. Out of 127 million ration cards, more than 99 percent have a designated Head of Household (HoH). The cash transfers will be made to the bank accounts of these HoHs, with 94 percent being women and 5 percent men, according to the CMO.
The launch of the Anna Bhagya scheme in Karnataka sparked controversy as Siddaramaiah criticised the Central government for disrupting the program by halting grain sales from the Food Corporation of India to state governments. Despite Karnataka’s attempts to procure rice from other central government agencies and states, their efforts were in vain.
Under pressure to fulfill the scheme’s guarantee, the Congress party announced the cash transfer solution. The annual expenditure for the scheme is approximately Rs 10,000 crore. While the government initially estimated the monthly cost of supplying grains to be around Rs 840 crore, the cash transfer method will cost the state exchequer approximately Rs 750 crore, accounting for transportation savings.
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