- The PMGKY was initially launched to recover black money from tax evaders by providing them with protection from legal action.
- The government provided a chance for tax evaders to disclose unaccounted income with a 49.9% tax rate under the PM Garib Kalyan Yojana scheme. The deposited amount was to be used to eliminate income inequality in the nation.
- The government announced relief efforts during the COVID-19 pandemic with the scheme extension in 2020.
- The extension’s objective is to promote small businesses and avoid disrupting the employment of low-wage workers (with up to 100 employees).
- In accordance with the extension, the central government provides the full employees with EPF contributions (12% of the total wages) and employers’ EPF & EPS contributions (12% of wages), for three months, a total of 24% of the monthly wages.
- The government also announced relief packages to help the poor through various initiatives. Ms. Nirmala Sitharaman, the Union Minister of Finance and Corporate Affairs, announced a relief package worth Rs. 1.70 lakh crore under the PMGKY.
Pradhan Mantri Garib Kalyan Yojana