Fin Min announces relief package worth Rs 1.7 lakh crore for poor

The government has announced a Rs 1.7 lakh crore relief package along with insurance cover for frontline medical personnel. Around 800 million people will receive free cereals and cooking gas apart from cash through direct transfers for three months.

The 21-day lockdown started on March 25. The Pradhan Mantri Garib Kalyan Yojana includes higher wages under the Mahatma Gandhi National Rural Employment Act (MGNREGA), Rs 1,000 ex-gratia payment to nearly 30 million poor senior citizens, widows and disabled as well as insurance coverage of as much as Rs 50 lakh each for about 2 million healthcare workers battling the disease.

“We’ve immediately responded within 36 hours of the lockdown. We’ve first reached out to the poorest of the poor, who need help,” finance minister Nirmala Sitharaman said “We will think about the others… will gradually address if there’s more to attend to,” she said, when asked about a stimulus plan for companies amidst the economic pain.

“It’s a very well-defined package, reinforcing government’s intent that no one should be deprived of basic facilities in today’s stressed times. We are hopeful of more calibrated responses in coming weeks as the impact of the pandemic unfolds,” said State Bank of India chairman Rajnish Kumar.
Under the package, the government will provide 5 kg of wheat or rice and 1 kg of pulses free every month for the next three months. Besides, 204 million women Jan Dhan account holders will get Rs 500 per month for the next three months.