Pradhan Mantri Garib Kalyan Yojana (PMGKY): All you need to know
Amid COVID-19 lockdown, the Government of India has announced Rs 20 lakh crore relief package under 'Atma Nirbhar Bharat Abhiyan' to make a self-reliant nation. For all establishments, EPF relief with Rs 2,500 crore liquidity support.
Pradhan Mantri Garib Kalyan Yojana (PMGKY) was launched by the Government of India in 2016. Income taxpayers are given an opportunity to forgo prosecution by declaring their illegal money and paying 50% penalty on their unaccounted incomes.
In this way, we can understand that Government came out with the scheme so that black money can be declared to the government at 50% tax rate that is 30% tax, 10% penalty and 33% Pradhan Mantri Garib Kalyan cess on tax. For four years 25% of the income will be locked under the scheme and will be given back without interest on it.
As per recent corona relief, ‘Garib Kalyan Package’ announced by the FM Nirmala Sitharaman:
- Provision to open the bank branches.
- For Building and Construction workers: Central government has given orders to the state government for building and construction workers to use funds of ₹31,000 crores to provide relief to them.
- PMGKY will include the transfers of cash to the poor and migrants.
- Under the PMGKY (food scheme) around 80 crore people will be benefited. Additionally, everyone will get 5 kg of wheat/rice for free of whatever they are already getting. The government will also provide 1 kg of a pulse of their choice to each household for the next three months. In fact, people can take it in two instalments.
- Medical insurance cover of ₹50 lakh per healthcare worker.
- Through the PM-KISAN scheme, farmers are receiving ₹6000 every year. The government now will give first instalment upfront. It is estimated that about 8.69 crore farmers are expected to benefit from this immediately.
- Government expect that wage increase through MNREGA will benefit around 13.62 crore families. It will an amount into an additional income of ₹2,000 per worker.
- In total eight parts namely farmers, MNREGA, widows, poor pensioners, divyang, women under Jan Dhan Yojana, women and households under Ujjwala scheme, self-help groups for women including those the livelihood mission, organised sector workers under EPFO, construction workers and district mineral funds will offer cash transfer through Direct Benefit Transfer (DBT).
- For the next three months, Divyangs, poor senior citizens, widows will get ₹1000.
- The government has doubled collateral-free loans to ₹20 lakh to 63 lakh SHGs that help around 85 crore households.
- Population below the poverty line that is about 8.3 crore families will get free LPG cylinders for three months.
- For the next three months, the government of India will pay the EPF contribution, both to the employee and employer (12% each). Mainly, this is for the establishment that has up to 100 employees, with 90% of them earning less than 15,000.
- For the organised sector, EPFO Scheme's regulations will be amended to allow the non-refundable advance of 75% of the amount standing to the credit of the worker or three month's wages, whichever is lower. It is estimated that this will benefit 4.8 crores workers who are registered with EPF and in a position to withdraw money.
Now the scheme has been extended for three more months that is till August, 2020. Finance Minister Nirmala Sitharaman said that for the next three months EPF or employee provident fund contribution will be 10% each for employees and employers as compared to the statutory obligation of 12%. She further stated that central public sector enterprises and state PSUs, will continue to pay 12%. Employees in these PSUs will be given the advantage of paying only 10%. Several other measures are being taken to fight against COVID-19 amid lockdown and to make Aatma Nirbhar Bharat.
- Jan Dhan account holders that are around 20 crore woman will be given ex-gratia amount of ₹500 per month for the next three months, to run the affairs of their households.
At last, let us tell you that the scheme comes into effect immediately. People will start getting benefits of the scheme from 1 April, 2020.
So, these are the ‘Garib Kalyan Packages’ announced on the second day of the lockdown by the Finance Minister Nirmala Sitharaman for the poor and needy, to benefit daily wage workers to fight against economic distress.