Coronavirus Relief Package by Nirmala Sitharaman- Free LPG and Grains, Easy Cash Transfer

Witnessing the universal spread of N Covid-19 or Coronavirus, as people call it, the Indian government has started to ramp up efforts to contain the spread of this disease.

On 26 March 2020, Nirmala Sitharaman, the Union Finance Minister of India announced a Gareeb Kalyan Yojana with a budget of Rs. 1.7 Lakh Crore in order to help the poor tide over the coronavirus lockdown in the country. On 25 March 2020, the Prime Minister, Mr. Narendra Modi had announced a 21-day lockdown as a measure against the pandemic. This lockdown is expected to cause a loss of Rs. 9 lakh crore to the Indian economy.

In her announcement of the Yojana, Nirmala Sitharaman announced that the poor of the country will be given a relief package to survive under the given conditions which will include direct benefits such as cash transfer, free LPG, grains and pulses. These benefits will be effective from 1 April 2020. Along with this, the middle class population of the country will be able to withdraw 75% of their non-refundable funds or 3 months of their wage, whichever is lesser from their EPF (Employee Provident Fund) accounts.

The following additional benefits will also be offered-

• Bank branches will remain open during the lockdown period
• State governments will provide relief to building and construction workers from a budget of Rs. 31,000 Crore
• Ujjwala beneficiaries will get free LPG cylinders for the next 3 months
• The EPF contribution of both, the employee and the employer of the companies having less than 100 employees, out of which 90% earn less than Rs.15,000 per month, will be paid by the government for the next 3 months
• Women Jan Dhan account holders will get Rs.500 per month for the next 3 months to meet their household expenses
• Installments of Rs. 2000 in the first week of April will be transferred to 8.9 crore farmers of the country
• All the MGNREGA workers will get a hike of Rs. 2,000
• 5kg of rice or wheat will be given to the poor under Prime Mini Garib Ann Yojana

This economic package launched by the central government is said to benefit more than 100 million poor in the country by means of direct cash transfer to their accounts. Reports show that nearly 75% of the country’s economy will be shut down during the lockdown leading to a direct output loss of 4.5% (approximately). On a positive note, the relief package brought in by the government intends to take care of the welfare concerns and of those who need immediate help to survive.

 With over 700 infected cases and 17 deaths in India as on 27 March 2020, the government has taken strict measures to fight against the deadly disease.