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Pradhan Mantri Garib Kalyan Yojana (PMGKY)

Posted on June 10, 2022 by admin1  978

In News

  • Recently, the Union Finance Minister stated that Pradhan Mantri Garib Kalyan Yojana (PMGKY) was of great success, citing a study by an Indian School of Business professor.
    • PMGKY was announced in 2020 amid the COVID-19 pandemic.

More about the study

  • PMGKY has reduced the probability of people consuming less food by 76% and pared their usage of utilities by 75%.
  • Overall, the study showed that assistance under the PMGKY reduced the probability of borrowing money for 67% of all the respondents. 
  • It concludes that the scheme helped people to live with dignity.

Pradhan Mantri Garib Kalyan Yojana (PMGKY)

  • About: 
    • It is a comprehensive relief package of Rs 1.70 Lakh Crore Yojana for the poor to help them fight the battle against CoronaVirus. 
    • This was announced to reach out to the poorest of the poor, with food and money in hands, so that they do not face difficulties in buying essential supplies and meeting essential needs. 
    • The package included (In effect from 30th March 2020):
      • Insurance cover of Rs 50 Lakh per health worker fighting COVID-19 provided under Insurance Scheme.
      • 80 crore poor people get 5 kg wheat or rice and 1 kg of preferred pulses for free every month for the three months.
      • The foodgrains were distributed to all the beneficiaries under the targeted public distribution system (TPDS) for Antyodaya Anna Yojana (AAY) and priority household (PHH) ration cardholders. 
      • 20 crore women Jan Dhan account holders to get Rs 500 per month for three months.

Challenges

  • Poverty alleviation has always been accepted as one of India’s main challenges by the policy makers, regardless of which government was in power.
  • Government policies have failed to address a majority of vulnerable people who are living on or just above the poverty line. 
  • High growth alone is not sufficient to reduce poverty. 
  • It remains among middle-income countries that are home to over half the world’s poor. 
  • Progress in poverty alleviation has also been affected by shocks like demonetisation and the pandemic.
    • The pandemic is the biggest setback to poverty reduction worldwide and it will stretch out targets for countries like India.

The Public Distribution System (PDS) 

  • PDS evolved as a system of management of scarcity through the distribution of foodgrains at affordable prices. 
  • Over the years, PDS has become an important part of the Government’s policy for management of the food economy in the country. 
  • PDS is supplemental in nature and is not intended to make available the entire requirement of any of the commodities distributed under it to a household or a section of the society.
  • Role of Central Government:
    • The Central Government, through Food Corporation of India (FCI), has assumed the responsibility for procurement, storage, transportation and bulk allocation of food grains to the State Governments. 
  • Role of State Governments:
    • The operational responsibility including allocation within State, identification of eligible families, issue of Ration Cards and supervision of the functioning of Fair Price Shops (FPSs) etc., rest with the State Governments. 
  • Under the PDS, presently the commodities namely wheat, rice, sugar and kerosene are being allocated to the States/UTs for distribution. 
    • Some States/UTs also distribute additional items of mass consumption through the PDS outlets such as pulses, edible oils, iodized salt, spices, etc.

National Food Security Act (NFSA) 2013

  • It  gives legal entitlement to 67% of the population (75% in rural areas and 50% in urban areas) to receive highly subsidised foodgrains.
  • Under the Targeted Public Distribution System (TPDS), foodgrain is sold at a highly subsidised prices of Rs. 1/-, Rs. 2/- and Rs. 3/- per kg for nutri-cereals, wheat and rice respectively.
  • Under the Act, the term “eligible households” comprises two categories:
    • Priority household category is entitled to 5 kg per person per month.
    • Antyodaya Anna Yojana (AAY) families are entitled to 35 kg per family per month.
  • The Department of Food and Public Distribution under the Ministry of Consumer Affairs, Food & Public Distribution is the nodal ministry for implementing this Act.

Way ahead

  • Need-based approach:
    • Policymakers often struggle to promote improvements in the well-being of the poorest individuals and families. 
    • People living in extreme poverty frequently have multiple needs that require a range of services.
  • Targeted delivery:
    • When the government looks at targeted approach of providing assistance instead of splashing money and takes input from the ground and does so quickly, in a timely and very open manner, the impact is there for all of us to see
  • Bottom-up participation:
    • An alternative bottom-up strategy and well-planned implementation mechanism would allow bottlenecks to be identified and rectified at the local level.
    • This is possible through a process of social mobilisation, encouraging poor people to participate and get them empowered.
  • Employment generation:
    • Moreover, it is necessary to identify poverty-stricken areas and provide infrastructure such as schools, roads, power, telecom, IT services, training institutions etc.
    • This will also help create employment opportunities, which may increase income, skill development, health and literacy.
 
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