Home Knowledge Path to Progress...Pradhan Mantri Garib Kalyan Yojna

Path to Progress...Pradhan Mantri Garib Kalyan Yojna

by Madhavi Mihir Bhuta (National Executive Member, BJP Mahila Morcha)
Jul 21, 2020

In May 2014, when Shri Narendra Modi led Governments resumed office, nation was engulfed in corruption on mammoth scale. The previous UPA Government’s tenure of 10 years had witnessed scams and scandals involving colossal sum.

The Modi Government, in its very first cabinet meeting, took the decision of strictest action to eradicate practice of unaccounted (Black) money. Hence, Government of Bharat  announced demonetization of 500 and 1000 rupee currency notes on the 8th of November 2016. This being a significant step aimed at curbing black money.

After 50 day long demonetization cycle, the NDA Government decided to offer one more chance for disclosure of unaccounted income.

Pradhan Mantri Garib Kalyan Yojna (PMGKY) was launched by Hon.Prime Minister in December 2016 in the lines of the Income Declaration Scheme 2016 (IDS) launched earlier in the year.

It being a part of the Taxation Laws (Second Amendment Act 2016), the scheme provided an opportunity to declare unaccounted wealth and black money in a confidential manner and avoid prosecution after paying a fine of 49.9% on the undisclosed income. An investment of additional 25% of the undisclosed income was to be invested in the scheme which would be refunded after four years, without any interest.

This scheme was implemented with the motive of helping out the poor by eliminating the wide gap between the rich and the poor, in terms of income. The scheme had commenced on the 17th December 2016 and remained open for declaration/deposit up to 31st March 2017.
A declaration under the aforesaid scheme was required to be made in Cash or Deposits in the Bharatiya Bank Accounts and was not permitted in the form of stock, Jewellery, immovable property or deposited in overseas accounts.

As per the Section 199D, the person making a declaration under the scheme would be charged the tax at the rate of thirty percent of the undisclosed income. As per the Section 199D(2), the amount of tax chargeable under the scheme was increased by a surcharge, called Pradhan Mantri Garib Kalyan Cess calculated at the rate of thirty three percent of such tax. In addition to this, as per Section 199E, penalty at the rate of Ten percent, of the undisclosed income, was made payable. Thus, Tax surcharge and penalty, totaling in all to 49.9% of declared income needed to be paid.

As per Section 199F, the declaring party was required to deposit an amount, not less than 25 % of the undisclosed income in the PMGKY deposits scheme, which had a lock-in period of four years from the date of deposit. Not declaring the undisclosed income under the PMGKY, attracted a fine of 77.25%, if the income was shown in Tax returns. In case, if the income was not shown in the tax returns, it attracted further 10 % penalty followed by prosecution.

The Black money (unaccounted, non-taxed money) has been root cause for ample of scams in the previous Government‘s tenure. During UPA rule, major part of Government machinery faced scrutiny as result of mammoth scams at every level.

Modi Government’s advent in 2014, had raised enormous expectation amongst citizens of Bharat to prevent such a washout of their taxable money.

Coming to power in 2014 and taking over the scam-scum economy in hand, Hon. Prime Minister, determined to cleanse the cash oriented system from its roots, wasted no time and began taking strong steps immediately.

The Demonetization proved to be stepping stone on the path of Digital Economy and transparency in economic transactions.

COVID19, an absolutely unknown pandemic attacking across the globe; Bharat faced an unusual situation for the first time in a century. With economic activities compelled to remain on halt, the lockdown caused severe difficulty for poor and underprivileged. With no livelihood option, their lives came to a standstill. Hence, to overcome this situation, Pradhan Mantri Garib Kalyan Yojna was extended further and through PMGKY, Modiji led Government announced a relief package of 1.70 Lakh Crore for the poor and underprivileged.

Around 81 crore citizens received ration for three months in April, May and June, at no cost Under PMGKY. Each member of the family was entitled to receive 5 kg of Wheat/Rice, as per the choice of their regional food pattern along with 1 kg of Chana Dal per family. Under it, in April 93%, May 91% and in June 71% of beneficiaries have received Ration. 116 Lakh Matric Ton Ration had been supplied by the Central Government to states for the distribution.

With COVID 19 epidemic not under control as yet, the central Government has extended the PMGKY till November, post Diwali, for another five months.

About 80 crore underprivileged, would receive 5 kg of Wheat/Rice per person/per month under the National Food Security Act. This is in addition to the previous 5 kg already received. To ensure them adequate supply of Protein supplement, 1 kg. Of Pulses per family would be provided under PMGKY, till November 2020.

The extension of this scheme would cost the Government exchequer a whooping 90 thousand crore. The total spending would be about One and a half Lakh crore.

Under PMGKY, provision of Medical insurance of Rs. 50 Lakhs is provided to Corona Warriors.

The beneficiaries include Safai Karmcharis, Ward boys, Nurses, ASHA Workers, Paramedics, Technicians, Doctors and Specialists and other Health workers. As many as 22 Lakh health workers would be covered under this new scheme.

Government of Bharat ensures 3 -free of cost- LPG Cylinders to 8 crore poor families, under PMGKY.

Under Pradhan Mantri Kisan Yojna, it was announced at the time of launch, that the first installment of Rs.2000/- due in 2020-21, would be paid to the farmers. It covers 8.7 crore farmers, that were paid in April 2020.

A total of 20.40 crore PMJDY Women account-holders would be given an Ex-gratia Rs.500/- per month, for three months.

Wage-earners below Rs.15,000 per month in employed by a business having less than 100 workers will be paid 24 percent of their monthly wages into their PF accounts, under the PMGKY.

The Government to provide Rs.1000 for three months, to the three crore aged widows and people in Divyang category, under PMGKY.

To ensure livelihood opportunity to reverse migrants, that is migrant workers who have migrated back to their natives due to lockdown, the Modi Government has recently launched a mega mission under PMGKY. Hon. Prime Minister launched Pradhan Mantri Garib Kalyan Rozgar Abhiyan from Telihar in Khagaria district in Bihar by Hon. Prime Minister with a motive to empower and provide livelihood opportunities to returnee migrants and rural population.

It would cover 116 districts of Six states. The districts having more than 25,000 migrants have been selected to be part of the program. The Six states include Bihar (32 districts), Uttar Pradesh (31 districts), Madhya Pradesh (24 districts), Rajesthan (22 districts), Odisha (4 districts) and Jharkhand (3 districts).
The Government intends to provide livelihood opportunities through building of various durable infrastructural assets.

As of now, the rozgar scheme has been designed for 125 days only as it is not certain that the migrant labourers who have returned would prefer to stay in their native places for longer period. If the lockdown compels extension of their stay, the rozgar scheme would be extended.

The 25 works that have been targeted for implementation of this scheme include, Community Sanitation Center, Gram Panchayat Bhavan, National highway construction works, Railway roads, AnganWadi Centers, Horticulture, Plantation, Construction of Pond, Jal Jivan Mission, Laying of cables for Optical Fiber Network under Bharat Net, Shyamaprasad Mukherjee Rurban Mission, Poultry shed, Cattle shed, Goat shed, Vermi-composting, Solid & Liquid Waste Management Works, Works under PM Urja Ganga Project, Works through District Mineral Fund, Training through KVKs for Livelihoods etc.

The entire campaign is co-ordinate by 12 different ministries such as Rural Development, Panchayati Raj, Roads & Highways, Mines, Drinking Water and Sanitation, Environment,
The nodal Ministry would be the Rural Development Ministry.

Government has initiated the Skill mapping campaign of returnee migrants under which, various skills that the  migrants have acquired at their place of work is being mapped and classified, to provide them the opportunity to tap their talents and skills and utilize in earning better livelihood.

Under MGNREGA, the pay scale has been raised from Rs 182/- to Rs 202/- per day.

The Pradhan Mantri Garib Kalyan Yojna has proven to be a boon for underprivileged poor, who were working hard to provide for their families.
 Mavelim Mhaskarance of Panji, in state of Goa has four members in her family. Due to lockdown, their monthly pay was stuck and they were in dire situation for basic necessities. Under PMGKY, they received 10 kg of rice and 10 kg. of Wheat along with 1 kg of Chana Dal, free of cost.

Joram Amma from Arunachal Pradesh has similar story to share.

Getting three LPG cylinders free and delivered at home, during lockdown, has been a relief for her and has helped her immensely in maintaining the household expense during this difficult times.

Hon. Prime Minister having worked at grass root during his RSS Pracharak days, he was aware of righteousness within common man’s soul.

During previous Government’s tenures, the huge corruption was a major issue. But, it was largely due to Corruption in political system that had percolated in the administration...
Hon. Prime Minister, grasps the nerve of the common man and has immense faith in common man’s virtue. Channelizing this goodness, Modiji inspired Public-Private Partnership model, first in Gujarat as the CM and later in the entire nation as the PM.

Hon. Prime Minister appealed and encouraged entrepreneurs to treat this Pandemic of COVID 19 as an opportunity to develop new avenues and spare the Government machinery for the needy.

Bharat May be a developing economy but visionary and compassionate governance of Hon. Prime Minister has put Bharat in winning spree over COVID crisis, for sure.