The Pradhan Mantri Garib Kalyan Yojana (PMGKY) is a government scheme that has served two distinct purposes since its inception, initially as a tax measure and later as a massive welfare package. The original PMGKY was introduced in December 2016 as a tax amnesty scheme under the Taxation Laws (Second Amendment) Act, 2016. Its purpose was to allow individuals with undisclosed income to voluntarily declare it, pay a penalty of 50%, and avoid prosecution, with the intent to use the deposited funds for public welfare. This initial version was valid until March 2017.
The scheme gained its current prominence in March 2020 when the Union Finance Ministry announced a ₹1.70 lakh crore relief package under the PMGKY to mitigate the economic impact of the COVID-19 lockdown. This version was a comprehensive welfare mechanism providing food, cash, and employment support to the poor. Key provisions included an advance installment of ₹2,000 for farmers under PM-KISAN, a ₹500 per month direct cash transfer for three months to women Jan Dhan account holders, and an increase in MGNREGA daily wages from ₹182 to ₹202.
The most significant component of the relief package was the Pradhan Mantri Garib Kalyan Anna Yojana (PM-GKAY), a food security scheme. The PM-GKAY provided an additional 5 kg of free rice or wheat per person per month to beneficiaries covered under the National Food Security Act, 2013 (NFSA), which includes Antyodaya Anna Yojana (AAY) and Priority Households (PHH). This food security component has been extended multiple times and was integrated into the NFSA framework, with the Union Cabinet approving its continuation until December 2028. The PM-GKAY connects directly to the Targeted Public Distribution System (TPDS) for implementation.