The Pradhan Mantri Garib Kalyan Yojana (PMGKY) is an Indian government welfare program aimed at providing relief and support to economically disadvantaged and vulnerable sections of society.
It was introduced as a part of the government's efforts to mitigate the economic impact of the COVID-19 pandemic and provide assistance to those in need.
It all started with a relief package of Rs 1.70 lakh crore was provided under the PM Garib Kalyan Yojana. The scheme includes an additional allocation of 5 kg of food grains per person beyond the regular quota.
PMGKY was launched with two main objectives: to curb black money and to initiate income equality. It was launched as a follow-up to the Income Declaration Scheme.
The PMGKY was extended in 2020 in response to the COVID-19 pandemic. The pandemic devastated the Indian economy, and the government wanted to provide financial assistance to the poor and vulnerable.
It is a comprehensive scheme with the following components:
Food Security: Under this scheme, eligible beneficiaries receive additional free food grains through the Public Distribution System (PDS). This aims to ensure that people have access to essential food items during challenging times.
Financial Assistance:The government provides cash transfers to women beneficiaries under the Pradhan Mantri Garib Kalyan Yojana. This financial support is aimed at helping them meet their immediate needs and expenses.
LPG Cylinders: The scheme offers free LPG (liquefied petroleum gas) cylinders to beneficiaries for a specified period. This is intended to promote clean cooking and support households that rely on LPG for cooking.
Health Insurance: Health insurance coverage is extended to frontline workers involved in the fight against COVID-19. This helps them access medical treatment in case of infection or other health-related issues.
Assistance to Farmers:The program includes measures to support farmers by providing financial aid and assistance to enhance agricultural activities and increase their income.
Pension Schemes: The government offers support to elderly individuals and those with disabilities through pension schemes and direct financial assistance.
The Pradhan Mantri Garib Kalyan Yojana was re-designed to provide immediate relief to those in need, especially during times of crisis such as the COVID-19 pandemic. It includes a combination of food security, financial assistance, and support for various vulnerable groups in society, with a focus on women, the elderly, and frontline workers.
Ask Anything, Know Better
August 13 On August 5, major stock markets across the world experienced their sharpest decline in decades. Japan’s stock markets have fallen by 24%, Taiwan by 15%, US by 13% and India’s NIFTY by 4%. What could be the reasons? One of the common reason is the fear of recession in the US economy. The other reason is the geopolitical tensions between Iran and Israel as well as Bangladesh crisis. But there is more reason which is the most important. It is increase of interest rates by Bank of Japan by 0.35%. The interest...
July 28 China's economy is projected to grow by 5 percent in 2024 and 4.5 percent in 2025 which suggests a contraction of the overall economy. Property investment in China has fallen by 10.1 percent in the first 6 months of 2024. Home sales are down 19 percent in the same period. New construction has fallen by 23.7 percent. The country is on the edge of deflation and there are signs of weak consumer spending. China’s total debt-to-GDP ratio is around 350 percent. A debt crisis is coming, and it is bound to be the biggest in...
July 28 Unemployment is one of the most pressing challenges of India. According to the latest Annual Survey of Unincorporated Enterprises (ASUSE) for 2021-22 and 2022-23 released by the Union Ministry of Statistics and Programme Implementation (MoSPI), nearly 50% Indian states and 3 Union territories saw informal sector job losses over 7 years. And what is the reason? Demonetisation, GST, COVID-19 shocks have costed 4.3% of India’s GDP in 2022-23 or ₹11.3 lakh crore and 16 lakhs informal sector jobs for India....
July 19 Tri-party repo” means a repo contract where a third entity (apart from the borrower and lender), called a Tri-Party Agent, acts as an intermediary between the two parties to the repo to facilitate services like collateral selection, payment and settlement, custody and management during the life of the transaction. It is also known as TREPS. Purpose of Tri-party Repo? The aim to introduce Tri-party repo was to improve liquidity in the corporate bond repo market, thereby providing an alternate to Government...
July 07 Bajaj Auto has introduced the Freedom 125, the world’s first motorcycle to run on Compressed Natural Gas (CNG). This 125 cc commuter bike operates on both petrol and CNG, aiming to significantly lower operational costs for it’s users. It is Priced between ₹95,000 and ₹1.10 lakh (ex-showroom). The Freedom 125 is designed for cost-conscious consumers which is expected to lead to a 50 percent reduction in fuel expenses compared to other petrol bikes. It is equipped with a small petrol tank and a CNG...
June 27 Nvidia has surged to become the world’s most valuable company, boasting a market capitalization of $3.34 trillion. This remarkable feat comes amid growing investor enthusiasm over artificial intelligence (AI). Nvidia's market valuation is now worth more than the GDP of all the nations of the world except the US, China, Germany, Japan, India and the UK. Nvidia’s has overtaken Apple, Microsoft, and Saudi Aramco based on their market capitalization. Nvidia’s meteoric rise can be attributed...
June 25 Central Bank of a country (like RBI for India) prepares country's monetary policy. In the policy they determine the interest rates at which money is available for lending which is ultimately provided to the people as credit. The purpose of this cheap loans is to increase people'e spending and economic activity. But there are situations when despite interest rates are already near or at zero, people don't spend and hoard whatever cash they can. A liquidity trap occurs when interest rates are very low,...
June 20 The Indian Government is pushing for its citizens to buy electric vehicles. But are they safe? You must have heard a lot many instances of electric cars catching fire in India. Electric vehicles typically catch fire because it’s Lithium-ion battery generates heat. Electric vehicles are even more dangerous to operate in India due to it’s climatic conditions as India has both high heat and humidity. Lithium-ion batteries tend to explode when they get overheated or when we use the wrong charger or current to...
June 20 Initially, the Bretton Woods Agreement of 1944 established the US dollar as the world’s primary reserve currency, pegged (connected) to the value of gold. Till 1971, the value of a dollar was tied to the value of gold known as the system of fixed currency exchange rates. But it collapsed in 1971 because the global economy and its demand for gold was much higher than the available supply of this metal. In 1973, the Organization of Petroleum Exporting Countries (OPEC) imposed an oil embargo (ban) in response to...
June 16 Central Bank Digital Currency (CBDC) represents a digital form of a country's national currency also known as “Digital Rupee” or “e₹”. It is a legal tender like any other currency which is issued and regulated by the central bank (RBI), the only difference is that it is in a digital form. It is the same as a sovereign currency and is exchangeable one-to-one at par (1:1) with existing currency. Digital rupee (e₹) will offer features of physical cash like trust, safety and settlement...
Comments
Write Comment