The Finance Minister Nirmala Sitharaman has announced the Pradhan Mantri Garib Kalyan Scheme, under which the Government would provide a relief package of Rs 1.7 trillion to the underprivileged, poor and migrant workers affected by a lockdown amid the Covid-19 crisis.

Key Highlights

(i) 50 lacs per person insurance package for workers and nurses and doctors who continuously give services in this situation

(ii) Pradhan Mantri Anna Yojana covers 80 crore poor people and because of the same not a single person remains hungry. Therefore, 80 crore poor people will  get 5 kg of wheat or rice and 1 kg of preferred pulses for free every month for the next three months – INR 45000 (40000 plus 5000) Crores will be spent for this purpose

(iii) Government to front-load Rs 2,000 paid to farmers in the first week of April under existing PM Kisan Yojana to benefit 8.7 crore farmers – INR 16000 crores would be distributed to them

(iv) Under PM Garib Kalyan Yojana, MNREGA wages would be increased by INR 20 (now INR 202 a day earlier INR 182) with effect from 1 April, 2020. This will benefit approximately 13.62 crore families – Approximately, INR 5600 Crores will be spent for this purpose

(v)  An ex-gratia of INR 1,000 to 3 crore poor senior citizen, poor widows and poor disabled – INR  3000 crores has been provided for this purpose in the PM Garib Kalyan Package

(vi) 20 crore women Jan Dhan account holders to get Rs 500 per month for the next three months – INR 31000 crores will be spent for this purpose

(vii) Under PM Garib Kalyan yojana, gas cylinders, free of cost, would be provided to 8 crore poor families for the next three months. Three gas cylinders would be provided during this period- INR 13000 crores would be provided for this purpose;

(ix)  Government proposes to pay epf contribution 24% (12+12 – employee + employer contribution) for the next 3 months for those establishment who has less than 100 employees and employees who gets salary less than INR 15000/- – INR 5000 Crores has been allocated  for this purpose

(x) Employees’ Provident Fund Regulations will be amended to include Pandemic as the reason to allow 75% of credit as non refundable advance or wages of 3 months wilhichever is lower

(xi) Central Government has given orders to State Governments to use Building and Construction Workers Welfare Fund to provide relief to Construction Workers

A detailed press note is available in the public domain.