International Monetary Fund (IMF) has lauded India’s food subsidy program which prevented the increased prevalence of extreme poverty in the country during Covid-19.
In a report the IMF has said, the expansion of food transfers and subsidies make it an important instrument for poverty alleviation. Appreciating the Pradhan Mantri Garib Kalyan Yojana, the report demonstrated that the program provided insurance to the poor and prevented an increase in the prevalence of extreme poverty in the country.
It stated that doubling of entitlements in 2020 during pandemic helped maintain extreme poverty at the low 0.8 percent level. It also said, without any food subsidies, extreme poverty in the pandemic years would have increased by 1.05 per cent.
The report said that poverty in the country declined the fastest during the period 2014 to 2019. The report also stated that social safety net provided by the expansion of country’s food subsidy program absorbed a major part of the pandemic shock. This illustrates the robustness of India’s social safety architecture as it withstood one of the world’s biggest income shocks.
WhatsApp us