Govt announces Rs. 1.7 lakh crore package for the poor, Rs.2000 each to be transferred to 8.7 lakh farmers


NewDelhi: In the wake of the 21-day national lock-down, Finance Minister Nirmala Sitharaman on Thursday announced Rs.1.76 lakh crore package for the people bottom of the pyramid-the labourers, urban and rural poor. The Scheme, to be known as Pradhan Mantri Gareeb Kalyan Yojna, involves both direct cash transfer and food-security related measures.

Under the Food-security related measures, an additional five kilos of rice/wheat will be given along with 1-kilo pulse per household. This will benefit about 80 Crore people of the country.

Under cash transfers which is largely under DBT, there are going to be 8 specific group of people who will be addressed. These include MGNREGA beneficiaries, farmers, poor widows, poor divyang, women having Jan Dhan Yojana accounts and women under Ujjwala Yojana, women in SHGs, women under EPFO, construction workers.

The government will transfer Rs.2000 each to 8 lakh 70 thousand farmers across the country in the first week of April. The government also transfer Rs.1000 to about 3 crore senior citizens, Divyangs and widows ex-gratia in two instalments in the next 3 months. The government will also transfer Rs.500 per month for 3 months to women holding Jan-Dhan accounts.  The Government to provide free gas cylinders under the Pradhan Mantri Ujjwala Yojna for 3 months.



  1. Insurance scheme for health workers fighting COVID-19 in Government Hospitals and Health Care Centres
  • Safai karamcharis, ward-boys, nurses, ASHA workers, paramedics, technicians, doctors and specialists and other health workers would be covered by a Special insurance Scheme.
  • Any health professional, who while treating Covid-19 patients, meet with some accident, then he/she would be compensated with an amount of Rs 50 lakh under the scheme.
  • All government health centres, wellness centres and hospitals of Centre as well as States would be covered under this scheme  approximately 22 lakh health workers would be provided insurancecover to fight this pandemic.
  1. PM Garib Kalyan Ann Yojana
  • Government of India would not allow anybody, especially any poor family, to suffer on account of non-availability of foodgrains due to disruption in the next three months.
  • 80 crore individuals, i.e, roughly two-thirds of India’s population would be covered under this scheme.
  • Each one of them would be provided double of their current entitlement over next three months.
  • This additionality would be free of cost.


  • To ensure adequate availability of proteinto all the above mentioned individuals, 1 kg per family, would be provided pulses according to regional preferences for next three months.
  • These pulses would be provided free of costby the Government of India.

III. Under Pradhan Mantri Garib Kalyan Yojana,

Benefit to farmers:

  • The first instalment of Rs 2,000 due in 2020-21 will be front-loaded and paid in April 2020 itself under the PM KISAN Yojana.
  • It would cover 8.7 crore farmers
  1. Cash transfers Under PM Garib Kalyan Yojana:

Help to Poor:

  • A total of 40 crores PMJDY women account-holderswould be given an ex-gratia of Rs 500 per month for next three months.

Gas cylinders:

  • Under PM Garib Kalyan Yojana, gas cylinders, free of cost, would be provided to 8 crore poor families for the next three months.

Help to low wage earners in organised sectors:

  • Wage-earners below Rs 15,000 per monthin businesses having less than 100 workers are at risk of losing their employment.
  • Under this package, government proposes to pay 24 percent of their monthly wages into their PF accounts for next three months.
  • This would prevent disruption in their employment.

Support for senior citizens (above 60 years), widows and Divyang:

  • There are around 3 crore aged widows and people in Divyangcategory who are vulnerable due to economic disruption caused by COVID-19.
  • Government will give them Rs 1,000 to tide over difficulties during next three months.


  • Under PM Garib Kalyan Yojana, MNREGA wages would be increased by Rs 20 with effect from 1 April, 2020. Wage increase under MNREGA will provide an additional Rs 2,000 benefit annually to a worker.
  • This will benefit approximately 13.62 crore families.
  1. Self-Help groups:
  • Women organised through 63 lakhs Self Help Groups (SHGs) support 6.85 crore households.
  1. Limit of collateral free lending would be increased from Rs 10 to Rs 20 lakhs.
  2. Other components of PM Garib Kalyan package

Organised sector:

  • Employees’ Provident Fund Regulations will be amended to include Pandemic as the reason to allow non-refundable advance of 75 percent of the amount or three months of the wages, whichever is lower, from their accounts.
  • Families of four crore workers registered under EPF can take benefit of this window.

Building and Other Construction Workers Welfare Fund:

  • Welfare Fund for Building and Other Constructions Workers has been created under a Central Government Act.
  • There are around 3.5 Crore registered workers in the Fund.
  • State Governments will be given directions to utilise this fund to provide assistance and support to these workers to protect them against economic disruptions.

District Mineral Fund

  • The State Government will be asked to utilise the funds available under District Mineral Fund (DMF) for supplementing and augmenting facilities of medical testing, screening and other requirements in connection with preventing the spread of CVID-19 pandemic as well as treating the patients affected with this pandemic.

(With PIB inputs)

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