Tamil Nadu became the 11th State in the country to successfully undertake “One Nation One Ration Card system” reform stipulated by the Department of Expenditure, Ministry of Finance. Thus, the State has become eligible to mobilise additional financial resources of Rs. 4,813 crore through Open Market Borrowings. Permission for the same was issued by the Department of Expenditure.
One Nation One Ration Card System is an important citizen centric reform. Its implementation ensures availability of ration to beneficiaries under National Food Security Act (NFSA) and other welfare schemes, especially the migrant workers and their families, at any Fair Price Shop (FPS) across the country.
This scheme aims to ensure all beneficiaries, especially migrants get ration (wheat, rice and other food grains) across the nation from any Public Distribution System (PDS) shop of their own choice. Finance Minister Nirmala Sitharaman announced plans for nation-wide rollout of the scheme in all states and Union Territories by March 2021.
One Nation One Ration Card' scheme is also aimed at reducing the incidents of hunger deaths in the country, to further improve rankings in the Global Hunger Index.
It aims to reduce instances of corruption by middlemen and fraudulence in ration cards to avail benefits from different states.
Implementation of the ONORC System
It was also launched with the purpose that no poor person should be deprived of getting subsidised food grains under the food security scheme when they shift from one place to another. To meet the challenges posed by the COVID-19 pandemic, the Government of India had in May 2020 enhanced the borrowing limit of the States by 2% of their Gross State Domestic Product (GSDP).
Half of this borrowing limit i.e 1% of GSDP has linked to undertaking citizen-centric reforms by the States. The four citizen-centric areas for reforms identified by the Department of Expenditure were
Therefore, an additional borrowing limit of 0.25% of the GSDP is allowed to the States only on completion of both of the following actions-