PMGKAY helped keep extreme poverty at lowest level in pandemic-hit 2020: IMF working paper
- IBEF
- April 7, 2022
According to a working paper by the International Monetary Fund (IMF), the Pradhan Mantri Garib Kalyan Yojana (PMGKAY), which offers free foodgrains to needy people, played a major role in keeping extreme poverty in India at 0.8% during the pandemic-hit year of 2020.
The central government offered 5 kilogrammes of foodgrains each month for free under PMGKAY, which was introduced in March 2020. The free grain is in addition to the standard quota set by the National Food Security Act (NFSA), which is delivered at a heavily subsidised rate. The duration of PMGKAY has been extended till September 2022.
According to Mr. Surjit S Bhalla, Mr. Karan Bhasin, and Mr. Arvind Virmani's research paper, extreme poverty was at its lowest level ever in the pandemic year 2020-21, at 0.8% of the population. According to the working paper, the government's pandemic support measures were critical in preventing an increase in the prevalence of extreme poverty, and food subsidies have consistently reduced poverty since the FSA's enactment in 2013 and the concomitant increase in the efficiency of targeting via Aadhaar.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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