Govt Schemes

Introduction

The Indian Government has from time to time launched various schemes with the main objective to cater to various social and economic welfare needs of the nation. These schemes play an important role in resolving a vast number of socio-economic issues that may be faced by the nation and therefore raising awareness on these schemes is essential for any concerned citizen.

The Purpose Behind Government Schemes

A lot can be said about the various schemes offered by the government and the names that these schemes have been given. Whether it is the Swachh Bharat Mission or Ayushman Bharat, these schemes are known to have been popular with the masses. Although, in some cases such as Digital India or the Smart Cities Mission, the Indian citizens are yet to fathom the real purpose and intent behind these schemes.

The names of these schemes have caught so much attention that they are talked about more often and some of them reflect Modi government’s key economic reforms that have been brought about in the recent past. The government is known to have been reasonably successful in containing the crisis faced in the agriculture sector, also as far as creating jobs and revival of private investment is concerned the government has given its fair share of attention. The schemes are not just fancy in their names but their progress is also regularly monitored.

Covid-19 Specific Relief Measures

The Indian economy is expected to be adversely affected by the COVID-19 pandemic. It has already begun showing signs of recession across different business segments with a massive drop in global production, impact on supply chains and closure of cross-border or inter-country trade. To address the impact faced by businesses and the overall economy to be able to spring back, the Government of India has announced various strategies and action plans.

On 26th March 2020, the Finance Minister of India announced various government schemes as a relief measure to help citizens deal with the Covid-19 crisis.  The announcement was made to address the losses faced as a result of the Covid-19 pandemic in India. The Finance Minister announced a relief package of Rs 1.70 lakh crores which is expected to tackle many financial difficulties due to Covid-19 outbreak. This comes under the blanket scheme called PM Garib Kalyan. The lockdown announced previously by the government would have cost the economy nearly Rs. 9 lakh crores and the various schemes are designed to address this loss.

These are focused on business continuity and revival of various sectors. Various schemes are designed to improve business continuity in the country and extend support to the MSME sector. Here are some of the measures as announced by the government.

• Insolvency threshold modified for MSMEs - To offer relief to the MSME sector, the government announced an increase in the threshold of default from the existing Rs. 1 Lakh to Rs 1 crore. It will help in preventing the influx of insolvency proceedings. The government has designed this scheme keeping in mind the present situation and may consider suspension of Sections 7, 9 and 10 of the Insolvency and Bankruptcy Code in the near future.
• Atal Bimit Vyakti Kalyan Yojana scheme - Many businesses are either shutting down or starting to lay off employees as it becomes difficult to pay wages or afford the further expenditure. For businesses struggling to pay wages to their employees, this scheme can prove to be very helpful. Although this scheme is not exactly designed for Covid-19, individuals can still avail its benefits. Under this scheme, people who have lost their employment can seek compensation via cash deposits directly to their bank accounts for three months since the time of unemployment. Those individuals who have subscribed to Employees State Insurance (ESI) scheme are eligible to be part of this scheme.
• Government e-Marketplace (GeM) – This scheme was announced in 2019 as part of the budget speech but is slated to have significant benefits in the ongoing Covid-19 pandemic situation. Businesses can sell their goods to the government with the help of this platform. Beneficiaries need to register their products on the platform as a start. A simple authorization process later, the government begins to buy the goods you get paid online for the same. As Covid-19 is a worldwide crisis, the government continues to source medical and related supplies mainly for health workers. The GeM is an effective mechanism to help with such needs and at the same time, keep supporting the businesses across the nation.
• MSME Ideas Portal - MSME Ideas Portal was launched to facilitate various venture capital firms to connect with different businesses. It was launched in the form of an online portal and designed to be a central repository for exploring schemes that are offered by central as well as state governments. These are primarily aimed at supporting MSMEs during these times of pandemic. The portal caters to MSMEs in rural and semi-urban areas. MSMEs must have a patented business idea in order to be eligible for benefits under this scheme.

List of Schemes Announced by Indian Government

• Atmanirbhar Bharat Abhiyan
• PM-KISAN (Pradhan Mantri Kisan Samman Nidhi) Scheme
• Pradhan Mantri Kisan Pension Yojana
• PM Garib Kalyan Yojana (PMGKY)
• Mega Pension Scheme
• New Jal Shakti Ministry
• Jan Dhan Yojana
• Skill India Mission
• Make in India
• Swachh Bharat Mission
• Sansad Adarsh Gram Yojana
• Pradhan Mantri Shram Yogi Maan-Dhan (PM-SYM)
• Beti Bachao Beti Padhao
• Hridaya Plan
• PM Mudra Yojna
• Ujala Yojna
• Atal Pension Yojana
• Prime Minister Jeevan Jyoti Bima Yojana
• Pradhan Mantri Suraksha Bima Yojana
• AMRUT Plan
• Digital India Mission
• Gold Monetization Scheme
• UDAY
• Start-up India
• Setu Bhartam Yojana
• Stand Up India
• Prime Minister Ujjwala Plan
• National Mission for Clean Ganga (NMCG)
• Atal Bhujal Yojana (ABY)
• Prime Minister’s Citizen Assistance and Relief in Emergency Situation (PM CARES)
• Aarogya Setu
• Ayushman Bharat
• UMANG – Unified Mobile Application for New-age Governance
• PRASAD Scheme – Pilgrimage Rejuvenation and Spirituality Augmentation Drive

Salient Features of Key Government Schemes

PM-KISAN (Pradhan Mantri Kisaan Samman Nidhi) Scheme - This scheme is set up to pay poor farmers (including small, marginal farmers with land size up to 2 hectares) Rs. 6,000 on a yearly basis. The payment is made in 3 instalments via Direct Bank Transfer. It is expected to benefit nearly 14.5 crore farmers across India.

Pradhan Mantri Kisaan Pension Yojana – This scheme has been designed to address the problems surrounding farm sector distress. The cabinet approved a ministry proposal to offer small and marginal farmers Rs 3,000 every month as fixed pension. The scheme will cost the exchequer Rs. 10,774.5 crore annually. Under the scheme, eligible farmers are those who fall in the 18-40 years age bracket. It is a voluntary and contributory based pension scheme. In the event that the beneficiary of the pension dies, the spouse receives 50% of the original pension amount as received by the original beneficiary prior to death.

Mega Pension Scheme - A Mega Pension Scheme was approved for traders, shopkeepers, and self-employed individuals. The criteria for eligibility are individual GST turnover being less than Rs 1.5 crore. This scheme guarantees a minimum pension amount of Rs 3,000 per month and covers about 3 crore small traders, self-employed individuals, and shopkeepers. The applicant must have attained 60 years of age.

New Jal Shakti Ministry – This scheme aims to provide piped water connection to each Indian household by the end of the year 2024. With the help of this scheme, the ministry can now develop plans to focus on the issue of water management.

Jan Dhan Yojana - Pradhan Mantri Jan Dhan Yojana is a scheme with the objective of financial inclusion. It carries an integrated approach to target comprehensive financial inclusion and offer banking services to as many households in the country as possible. The scheme provides access to many financial services such as savings bank accounts, credit based on needs, remittance facility, insurance, retirement benefits, etc.

Key Features of this scheme are as follows:

• The scheme does not have any criteria for minimum balance requirement
• Beneficiaries can avail overdraft of Rs. 10,000 per account per household. It must be preferably coming from the lady of the house.
• The scheme offers 4 % interest annually after opening the account
• There is also accidental insurance cover of Rs. 1 lakh
• The scheme provides life insurance cover of Rs. 30,000

Skill India Mission – This scheme was designed to create an all-encompassing skill training set-up covering all sectors and states. The government aims to achieve a 'Skilled India', for which it set up the National Skill Development Mission. It is expected to help in consolidating and coordinating skill training efforts. The scheme will help in fast-tracking decision making across sectors and focus on skills at every scale combined with speed and standards.

Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (ABPMJAY) – Considered to be the world’s biggest health insurance scheme, ABPMJAY aims to cover nearly 10 crore poor families, across the nation, both in rural as well as urban areas. The scheme offers an insurance cover of Rs 5 lakhs per beneficiary family.

Some of the key features of this scheme are as below:

• The scheme is designed to be offered in a paperless and cashless manner in public hospitals.
• It covers free treatment to beneficiaries at all public and private hospitals (as per the list mentioned by the government) in emergency situations.
• There is no fixed limit as far as the age and size of the family is concerned.
• The scheme is designed to cover all pre-existing conditions as known from the time the scheme is applicable.
• The insurance under this scheme covers pre and also post-hospitalisation expenses.
• The scheme covers individuals who are from economically backward sections, especially such families who do not have any adult members between ages 16 and 59, families with single or many disabled members, ragpicker, beggars, manual scavengers, tribal groups,  house helpers, construction workers, public transport drivers, sanitation workers, waiters, mechanic, etc.

Make in India - PM Narendra Modi announced the 'Make in India' campaign to fast-track and cater to investment needs, promote innovation, target skill development, safeguard intellectual property & set up state-of-the-art manufacturing infrastructure. The Make in India' scheme identified 25 different sectors across manufacturing, infrastructure and service industries. Detailed information is shared with the help of interactive apps and portals combined with professional-looking brochures. The government also opened up FDI in sectors such as defence manufacturing, construction and railways in a major way.

Swachh Bharat Mission - In 2014, the government announced Swachh Bharat Mission across the country and created almost a national movement with the same. This campaign was aimed at achieving a 'Clean India' by 2019, and it has been highly successful at achieving considerable progress. The Swachh Bharat Abhiyan is a cleanliness movement which has revolutionized the Indian mindset to a great extent.

Sansad Adarsh Gram Yojana – This scheme is projected at rural development and mainly focuses upon the development at the village level. It includes social and cultural development and creates awareness among people on the mobilization of the entire village community.

Pradhan Mantri Shram Yogi Maan-Dhan (PM-SYM) - This is a voluntary pension scheme that requires contribution at an individual level. Under the scheme, the beneficiary receives the following benefits:

(i) Minimum Assured Pension: Every beneficiary under the scheme receives a minimum assured pension of Rs. 3000/- every month. The beneficiary is eligible to receive this amount after 60 years of age.

(ii) Family Pension: In case the beneficiary dies in the period of subscription, the spouse of the beneficiary receives 50% of the pension as per the beneficiary’s entitlement. This is termed as a family pension. Family pension is provided only to a spouse.

(iii) In case a beneficiary has made regular contributions and in case of his or her death before attaining 60 years of age, the spouse is entitled to join the scheme and continue making regular contributions. They can also choose to exit the scheme as per provisions of exit and withdrawal as defined under the scheme.

Beti Bachao Beti Padhao - The objective of this scheme is to encourage girls to be socially and financially self-reliant with the primary accelerator being education.

PM Mudra Yojna - Pradhan Mantri MUDRA Yojana (PMMY) was launched by the Hon'ble Prime Minister in 2015. The scheme is designed to offer loans up to Rs. 10 lakhs to the non-organised, non-farm small/micro-enterprises. It aims to create a more inclusive and sustainable entrepreneurship culture. It is set up in collaboration with partner institutions to attain economic success and financial safety.

Pradhan Mantri Jeevan Jyoti Bima Yojana - The PMJJBY covers people who are in the age group of 18 to 50 years, have a bank account, can give consent to enable auto-debit. The primary KYC document required in this scheme is the Aadhaar card. Under this scheme, a life cover of Rs. 2 lakhs is offered for the one year and can be renewed. The scheme also offers risk coverage of Rs. 2 lakhs in case of death of the life insured. The beneficiary needs to make a premium payment of Rs. 330 annually and this is auto-debited from the bank account. This scheme is offered by LIC and many other life insurers. The cumulative gross enrolment as reported by banks is close to 5.91 crores under this scheme. About 145763 claims have been registered under PMJJBY out of which 135212 are known to be disbursed.

Key features include:

• Beneficiaries of this scheme can avail income tax benefits and exemptions as per the income tax act.
• In case the beneficiary wants to exit the scheme at any point, they have the flexibility to join again in future upon submitting a declaration stating good health in the prescribed format.
• The scheme does not carry any maturity or surrender benefit as such.
• Beneficiary’s insurance is to be terminated after attainment of 55 years of age.
• The account can be closed in case of insufficient balance for premium payment or in case the bank shuts down.

Pradhan Mantri Suraksha Bima Yojana - This scheme covers people who are in the age group of 18 to 70 years and have a bank account. The beneficiaries must give their consent to join the auto-debit mechanism. The Aadhaar card is the essential KYC document needed for the bank account. The scheme offers risk coverage of Rs. 2 lakhs meant for accidental death and full disability. It also provides Rs. 1 lakh for partial disability.

Premium amount of Rs. 12 is deducted annually from the account holder’s bank account via the ‘auto-debit’ facility. All Public Sector Insurance Companies offer this scheme or it can also be availed from General Insurance Companies who offer similar terms based on approval. The scheme has reported a cumulative gross enrolment of close to 15.47 crore. A total of 40,749 Claims have been registered under this scheme, out of which 32,176 are already disbursed.

Atal Pension Yojana (APY) – This scheme was launched in 2015 by the Honourable Prime Minister of India. It can be availed by all saving banks and post office saving bank account holders. The age group criterion is 18 to 40 years. Contributions may differ, depending on the pension amount chosen.  Once the beneficiary attains 60 years of age, a guaranteed monthly pension of Rs. 1,000 - Rs. 2,000 or Rs. 3,000 or Rs. 4,000 or Rs. 5,000 is provided under this scheme.

Post the death of the beneficiary, the spouse receives pension amount from the pension corpus which is accumulated by 60 years of age of the subscriber. Government guarantees a minimum pension amount, which comes from the accumulated corpus as per contributions. The scheme gives an option to the spouse of the subscriber to contribute to the APY account even after the beneficiary’s death. In case of the death of both the subscriber and the spouse, the nominee of the subscriber receives the pension amount which is accumulated till the date of their deaths.

Sukanya Samriddhi Yojna (SSY) - The Honourable Prime Minister of India launched Sukanya Samridhi scheme, under the blanket scheme ‘Beti Bachao, Beti Padhao’ on 22nd January 2015. The main objective of this scheme is to fulfil the education needs and cover the marriage expenses of a girl child. It allows opening of a single account per girl child.

Each family can have a maximum of two accounts, in case there are 2 girl children. A third account is also allowed to be opened, as long as the first or second pregnancy results in twins or triplets. The scheme offers a minimum Rs. 1,000 and maximum of Rs. 1.5 lakhs and this amount is to be deposited every year in the beneficiary’s bank account.

Deposits are made till the completion of 14 years of age, and this is calculated from the date of opening of the account. Once the girl child turns 21, the account can be closed. In case the account is not closed and the money is not withdrawn post such age, the interest continues to be earned on the amount. The scheme requires a birth certificate to be submitted at the time of opening the account.

FAQs on Government Schemes

End Note

These are various steps taken by the Government of India to ensure that individuals and businesses keep moving ahead despite economic issues, especially in the current Covid-19 scenario. Apart from the existing schemes which are known to have been successful, the government has also designed and launched various Covid-19 specific schemes to ensure that the nation is not drastically impacted with an economic crisis. It is up to individuals and businesses to make the most of these schemes and ensure success in the long run.