Topic: General Studies 2 and 3:
- Government Schemes and policies
- Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment.
Pradhan Mantri Garib Kalyan Yojana (PMGKY)- India’s relief package for COVID-19
The ₹1.7 Lakh Crore relief package – named PMGKY- was announced by Union government to alleviate the distress caused by COVID-19 pandemic.
Do You Know?
- The cost of the COVID-19 lockdown in India is pegged at nearly ₹9 lakh crore
- This is the third shock that the informal economy faces, after demonetisation and GST.
- US announced 2 trillion USD (Rs 148 Lakh crore) stimulus package to fight COVID-19
The Key features of PMGKY are:
- Healthcare Workers: Insurance cover of ₹50 lakh
- Food grains to Poor: 80 crore poor people under National Food Security Act will receive five extra kg of wheat or rice and 1 kg of pulses
- MGNREGA workers (13.63 crore): Wage increased from ₹182/day to ₹202/day
- Jan Dhan Women Account holders (20.4 crore): DBT of ₹500/ month for next three months
- Senior Citizens, disabled & Poor widows (3 crore): Ex-gratia of ₹1000 (through existing pension schemes)
- Farmers (8.7 crore): Front loading of ₹2000 to them under existing PM Kisan Yojana
- Ujjwala Beneficiaries (8.3 crore): Free cylinders for next three months
- Wage earners: Those earning below ₹15000/month in firms having less than 100 workers will receive 24% of their monthly wages into their PF accounts for next three months
- Construction workers: Centre has directed States to use Construction worker’s welfare fund to give relief to 3.5 crore registered workers
Is there a specific strategy used by government in this relief package?
- Government has followed two-pronged approach
- Ensuring a steady supply of food and cooking gas to poor people
- Easing cash woes of the vulnerable sections of society
- Fiscally prudent: By utilizing existing schemes funding for the package is kept within the budget so as to retain control over the deficit
- Preserving Financial resources -Given the uncertainty over the length of crisis – government may announce future relief packages to adapt with changing situation
- Modest cash transfer might not be enough given the drying up of incomes for the vulnerable sections of society
- Implementation issues: People may face difficulties to draw money from their accounts during the lockdown
- Migrant labourers may find difficulties to access the extra food grain announced
- Package does not address the challenges being faced by Informal MSMEs and other hard-hit sectors.
- Intervention by RBI like providing regulatory forbearance, moratorium on interest payments, changing classification norms, and ensuring easy access to credit.
- Centre needs to enhance the resources of State through measures like
- Releasing all the pending dues owed to the state governments on account of GST compensation.
- Assist states in raising finances from markets (by giving sovereign guarantees)
- Sharing bonanza from fall in Crude Oil Prices
- Consult States to ensure that supply chain, spread across multiple states, of essential commodities is not disrupted
- Harvest time – may lead to price fall or wastage due to disruption caused by lockdown – States to be financially supported (agriculture is a State subject)
- Civil Society and Corporates needs to pitch in during this crisis with their financial and human resources
Connecting the dots:
- Compassionate Capitalism
- What all needs to be included in the relief package- II which would be focused on middle class & corporate sector?
- N. K. Singh Panel recommendations on fiscal deficit range
IASbaba imparts 360-degree IAS preparation solutions with their exhaustive Prelims and Mains preparation courses, supported by the latest UPSC preparation material. Avail our expert help by enrolling with us to keep your knowledge updated and stay ahead of your competition.
Most Trending and Trusted Programmes by UPSC Toppers :