In a bid to help the poor fight the battle against coronavirus and lockdown, the government of India has announced a £17 billion relief package under Pradhan Mantri Garib Kalyan Yojana. The mega package focuses on emergency cash transfers into bank accounts of the poor, along with providing free food grains, pulses and cooking gas for three months in a bid to cushion them from the impact of the lockdown.
Finance minister Nirmala Sitharaman said, “Today’s measures are intended at reaching out to the poorest of the poor, with food and money in hands, so that they do not face difficulties in buying essential supplies and meeting essential needs.” Under the scheme, 800 million poor people will get 5 kg wheat or rice and 1 kg of preferred pulses for free every month for the next three months. Also, 200 million women Jan Dhan account holders will get Rs 500 per month for next three months.
The move was in contrary to the government’s usual stand against handouts but is seen as a response to an unprecedented crisis caused by the Covid-19 spread on the global economy and the nationwide three-week lockdown. Sitharaman said the government's priority was to reach the poorest of the poor first so that they don’t have to worry about food. She hinted that more welfare steps could be taken by the government in the near future depending on how things shape up.
The government announced an insurance cover for doctors, nurses, other health workers, safai staff and Asha workers dealing with Covid-19 cases with a Rs 50,00,000 cover in case they meet with an accident. The government has also increased MNREGA wage to Rs 202 a day from Rs 182 to benefit 136.2 million families. It announced an ex-gratia of Rs 1,000 to 30 million poor senior citizen, poor widows and poor disabled.
The ministry said the government will front-load Rs 2,000 paid to farmers in the first week of April under existing PM Kisan Yojana to benefit 87 million farmers.
For those earning under Rs 15,000 and working in entities with less than 100 employees, the government has decided to take over the employee and employer’s Provident Fund contribution – which adds up to 24% of the salary. The central government has also ordered the state governments to use Building and Construction Workers Welfare Fund to provide relief to construction workers rendered jobless in the wake of the lockdown.
Existing schemes to hand out benefits to poor
The government plans to use the existing schemes to hand out benefits to the poor announced by Sitharaman. As part of the package, the first instalment of Rs 2,000 under PM-Kisan will be given immediately, while wages under the Mahatma Gandhi National Rural Employment Guarantee Act are being increased by Rs 20 a day.
Under the ‘Pradhan Mantri Gareeb Kalyan Ann Yojna’, 800 million poor people will get 5 kgs of rice/wheat and 1 kg of preferred pulses every month for three months, this will be in addition to the already allotted 5 kg wheat/rice.
