Indian Economy News

Pradhan Mantri Garib Kalyan Package: Progress so far; Around 39 crore poor people received financial assistance of Rs 34,800 crore under the PMGKP

Using the digital payment infrastructure, around 39 crore poor people received financial assistance of Rs 34,800 crore (US$ 4.94 billion) under the Pradhan Mantri Garib Kalyan Package (PMGKP) as on 5^th May, 2020, announced by Union Finance Minister Smt Nirmala Sitharaman on 26th March, 2020 to protect them from the impact of the lockdown due to COVID 19.

As part of the PMGKP, the Government announced free food grains and cash payment to women and poor senior citizens and farmers. The swift implementation of the package is being continuously monitored by Central and State governments. Finance Ministry, the concerned Ministries, Cabinet Secretariat and PMO are leaving no stone unturned to ensure that the relief measures reach the needy swiftly and in line with the intent of the lock down.

Fintech and digital technology have been employed for swift and efficient transfer to the beneficiary. Direct Benefit Transfer (DBT), i.e. transfer that ensures that the amount is directly credited into the account of the beneficiary, eliminates leakage and improves efficiency has been employed. This has also ensured credit to the beneficiary’s account without the need for the beneficiary to physically go to the branch.

The progress achieved so far, under various components of PMGKP is as follows:

• Rs 16,394 crore (US$ 2.33 billion) front loaded towards payment of the first instalment of PM-KISAN to 8.19 crore beneficiaries.
• Rs 10,025 crore (US$ 1.42 billion) credited to 20.05 crore (98.33 per cent) women Jan Dhan account holders as first instalment. The number of women PMJDY accounts holders whose accounts have been debited by customer induced transaction is 8.72 crore (44 per cent). Rs 2,785 crore (US$ 395.09 million) credited to 5.57 crore women Jan Dhan account holders with second instalment as on 5 May, 2020.
• Rs 1,405 crore (US$ 199.32 million) disbursed to about 2.82 crore old age persons, widows and disabled persons. Benefits transferred to all 2.812 crore beneficiaries.
• 2.20 crore Building & Construction Workers received financial support amounting to Rs 3,492.57 crore (US$ 495.97 million).
• So far 67.65 lakh MT of food grains have been lifted by 36 States/UTs for April. 30.16 LMT of foodgrains have been distributed, covering 60.33 crore beneficiaries by 36 States/UTs for April 2020. 6.19 LMT of food grains have been distributed, covering 12.39 crore beneficiaries by 22 States/UTs for May 2020. 2.42 LMT of Pulses have also been dispatched to various states/UTs. Pulses have been distributed so far to 5.21 crore household beneficiaries out of 19.4 crore such beneficiaries.
• Total 5.09 crore Pradhan Mantri Ujjwala Yojana (PMUY) cylinders have been booked under this scheme so far and 4.82 crore PMUY free cylinders already delivered to beneficiaries.
• 9.6 Lakh members of Employees’ Provident Fund Organisation (EPFO) has taken benefit of online withdrawal of non-refundable advance from EPFO account amounting to 2,985 crore. 24 per cent EPF contribution transferred to 44.97 Lakh employees account amounting to Rs 698 crore (US$ 99.02 million).
• Increased rate of MGNREGA has been notified w.e.f 01-04-2020. In the current financial year, 5.97 crore person’s man-days of work generated. Further, Rs 21,032 crore (US$ 2.98 billion) released to States to liquidate pending dues of both wage and material.

• Insurance Scheme for Health workers in Government Hospitals and Health Care Centres has been operationalised by New India Assurance covering 22.12 lakh health workers.

Pradhan Mantri Garib Kalyan Package

Total Direct Benefit Transfer till 05/05/2020

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.