Reach of relief measures and support

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Public distribution system (PDS), Jan Dhan cash transfers and Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) constitute the core support elements for informal sector households during the pandemic. The Pradhan Mantri Garib Kalyan Yojana provided 10kg of rice or wheat per person (5kg in addition to the usual quota, free of cost) to below poverty line and Antyoddaya Anna Yojana scheme beneficiaries until November. BPL families, which constitute close to two-thirds of our entire sample, on an average received 29kg of grain in October and November, though given their household size, the monthly entitlement should have been around 44kg. We also found that close to three fourth of eligible households did not receive free rations in addition to the usual entitlements. Half of the households that received PDS grains had not yet reached pre-lockdown consumption levels.

Coming to direct cash support, the survey found that 70% of Jan Dhan account holding families received transfers. However, the Jan Dhan transfers of ₹500 per month for three months were not adequate given the fact that even respondents whose households did receive the transfer, had post-lockdown incomes that were lower on average by ₹1,200 per month, not to mention lost earnings in the intervening period. MGNREGS has been a significant safety net for rural workers and returning migrants during the pandemic. The MGNREGS national database shows that as of November, number of person days generated under the scheme was 43% more than the previous year (See chart). However, our results suggest that there continues to be a huge unmet demand for MGNREGS work.