Pradhan Mantri Garib Kalyan Yojana UPSC

Pradhan Mantri Garib Kalyan Yojana

The Union Finance Minister has announced Rs 1.70 Lakh Crore relief package under Pradhan Mantri Garib Kalyan Yojana for the poor to help them fight the battle against Corona Virus. 

The package uses the existing government welfare channels to provide relief in kind and cash to more than half of India's population. The package is so designed that it benefits the people who are most affected - urban poor and vulnerable rural families. Let us look into the various components of Pradhan Mantri Garib Kalyan Yojana .

• PM Garib Kalyan Ann Yojana 
• Insurance scheme for healthcare workers 
• Cash transfers to poor and vulnerable sections 
• Benefits for the workers employed in organised sector 
• Centre-state coordination in utilisation of existing funds. 

PM Garib Kalyan Ann Yojana 

Present Status: 

Presently, the Government is implementing National Food Security Act, 2013 in order to ensure food security to 75 per cent of the rural population and up to 50 per cent of the urban population, thus covering two-third of India’s population. The eligible people are entitled to receive 5 kgs of food grains at the rate of Rs 1/2/3 per kg for nutri-cereals/wheat/rice respectively.

Announcement :

• Eligible persons would receive additional 5 kgs of wheat or rice free of cost for next 3 months. 

• To ensure adequate availability of protein to all the eligible beneficiaries, 1 kg of pulses per family would be provided free of cost for next three months. 

• Set to benefit around 8o crore individuals. 

Insurance Scheme for Healthcare Workers 

Benefits: 

Any health professional, who while treating Covid-19 patients, meets with some accident, then he/she would be compensated with an amount of Rs 50 lakh under the scheme. 

• Coverage: 

Safai karamcharis, ward-boys, nurses, ASHA workers, paramedics, technicians, doctors and specialists and other health workers 

• Applicability: 

All government health centres, wellness centres and hospitals of Centre as well as States would be covered under this scheme.(Approximately 22 lakh health workers) 

Cash Transfers to Poor and Vulnerable Sections 

• Benefit to farmers: 

The Government is implementing PM-KISAN Scheme which provides for cash transfer of Rs 6,000 (three equal instalments of Rs 2,000 each) to all the landowning farmers in India. 

• The first instalment of Rs 2,000 due in 2020-21 will be front-loaded and paid in April 2020 itself under the PM KISAN Yojana. 

• Help to Poor: 

A total of 20.40 crores PMJDY women account-holders would be given an ex-gratia of Rs 500 per month for next three months. 

• Gas cylinders: 

The gas cylinders would be provided free of cost to 8 crore poor families for the next three months. 

• Support for senior citizens (above 60 years), widows and Divyang:

There are around 3 crore aged widows and people in Divyang category who are vulnerable due to economic disruption caused by COVID-19. Government will give them Rs 1,000 to such people. 

• MNREGA:

Under PM Garib Kalyan Yojana, MNREGA wages would be increased by Rs 20 with effect from 1 April, 2020. Wage increase under MNREGA will provide an additional Rs 2,000 benefit annually to a worker. 

• Self-Help groups: 

The Women organised through 63 lakhs Self Help Groups (SHGs) support 6.85 crore households. The Limit of collateral free lending would be increased from Rs 10 to Rs 20 lakhs. 

Benefits for the Workers Employmed in Organised Sector 

Government to make contribution to Employee Provident Fund (EPF) 

• Present Status: 

The Government is presently implementing social security schemes such as Employee provident fund (EPF), Employee pension scheme(EPS), Employee state Insurance etc. for the benefit of workers in the organised sector. The contribution to these schemes is made by both employee and employer wherein the contribution is defined in terms of percentage of basic salary of the employees. The contribution is mandatory for the workers whose monthly basic salary is below Rs 15,000. The contribution to these social security schemes is as shown below: 

Announcement: 

As can be seen in above figure, both employee and employer are required to make contribution of 12% each, totalling 24% to EPF and EPS. The Government has announced that it would pay 24% of the contribution of both employee and employer for the next 3 months. This would be applicable only those workers whose basic salary is below Rs 15,000 per month and are employed in industries having less than 100 workers.

Withdrawal of Money From Employee Provident Fund (EPF) : 

Present Status: 

As per current EPF withdrawal rules, an employee can prematurely withdraw money from the EPF account for reasons such as job loss, marriage, education, construction of house, medical emergency. However, these withdrawals are subject to certain terms and conditions. 

For instance, for marriage , an EPF member can withdraw maximum 50 per cent of the employee's share. This can be done only after seven years of service.

Announcement: 

Employees’ Provident Fund Regulations will be amended to include Pandemic as the reason to allow non-refundable advance of 75 percent of the amount or three months of the wages, whichever is lower, from their accounts. 

Centre-State Co-ordination for the Utilisation of Existing Funds 

Utilisation of Building and Other Construction Workers Welfare Fund: 

Present Status: 

The Building And Other Construction Workers’ Welfare Cess Act, 1996 provides for the imposition of cess of around 2% of the cost incurred by the employer on the construction of buildings. The proceeds of the cess are deposited under Building and Other Construction Workers’ Welfare Fund. The fund is managed by State Building and other construction workers welfare boards in respective states. As the name suggests, the fund is utilised for the welfare of construction workers such as providing assistance during accidents, providing pension, give loans for purpose of education and so on. 

Announcement: 

The Centre has asked the states to use funds of around Rs 31,000 crore in their respective welfare funds to mitigate the economic impact on the construction workers. 

Utilisation of District Mineral fund (DMF) 

Present Status: 

The Ministry of Mines has notified the Mines and Minerals (Contribution to District Mineral Foundation) Rules, 2015, on 17.9.2015, which prescribes the rate of contribution to DMF as follows: 

• 10% of royalty in respect of mining leases granted on or after 12.1.2015; and 

• 30% of royalty in respect of mining leases granted before 12.1.2015. 

These funds are utilized under Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY) for the welfare of areas and people affected by mining related operations. 

Announcement: 

The State Government will be asked to utilise the funds available under District Mineral Fund (DMF) for supplementing and augmenting facilities of medical testing, screening and other requirements in connection with preventing the spread of COVID-19 pandemic as well as treating the patients affected with this pandemic.