The Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) is a landmark initiative of the Indian Government’s efforts to combat the economic fallout of the Covid-19 pandemic. The Union Cabinet has recently announced the extension of the scheme’s Phase V for another four months, from December 2021 till March 2022. This scheme, designed to ameliorate the economic distress of the poor, was first launched in April 2020 for three months and has since been extended periodically.
Background of PMGKAY
The PMGKAY is a component of the bigger Pradhan Mantri Garib Kalyan Package (PMGKP) aimed at supporting the economically weakest sections of society in their struggle against the Covid-19 pandemic. The Ministry of Finance serves as the nodal body overseeing the administration of this scheme. Since its inception, the scheme has been subdivided into multiple phases: Phase-I and Phase-II running from April to June and July to November 2020 respectively; Phase-III from May to June, 2021; and Phase-IV which is currently operational from July to November, 2021.
Benefits under PMGKAY
The PMGKAY aims to provide an additional 5 kg grains (either wheat or rice) for free to each person covered under the National Food Security Act 2013 (NFSA). This is supplementary to the standard 5 kg of subsidised foodgrain provided via the Public Distribution System (PDS). However, the recent version of the scheme does not include the provision of 1 kg pulses per month free-of-cost, as was the case in the 2020 PMGKAY.
Funding and Expenditure
The government’s expenditure on the first five phases of PMGKAY stands at around Rs.2.6 lakh Crore. The fifth phase alone is expected to necessitate an additional food subsidy of approximately Rs. 53344.52 Crore.
Distribution and Reach
Since its launch up to the fourth phase, PMGKAY has facilitated the allocation of nearly 600 Lakh Metric Tonnes (LMT) of foodgrains to various states and Union Territories, which translates to roughly Rs 2.07 lakh crore in food subsidy. The fourth phase of distribution is still ongoing with 93.8% of food grains lifted according to reports from states/Union Territories.
Significance amid Covid-19 Crisis
PMGKAY takes on added significance in light of the job losses incurred by daily wage earners and informal sector professionals due to the Covid-19 pandemic.
Challenges Ahead
One of the major challenges faced in the implementation of PMGKAY is the outdated data of beneficiaries under NFSA, which is based on the 2011 Census. The economic disruption and consequent increase in food-insecure people since then means that a large number of needy individuals remain untouched by the scheme’s benefits.