Centre borrows another $1 billion from World Bank for COVID-19 relief

• The Government of India and the World Bank signed an agreement for $750 million of $1 billion assistance proposed for Accelerating India’s COVID-19 Social Protection Response Programme to support India’s efforts at protecting vulnerable households impacted by the COVID-19 pandemic.

About:

• The program will be implemented by the Ministry of Finance, Government of India.

• This takes the total commitment from the Bank towards emergency COVID-19 response in India to $2 billion. A $1 billion support was announced earlier in April 2020.

• This new support will be funded in two phases – an immediate allocation of $750 million for the fiscal year 2020 and a $250 million second tranche that will be made available for the fiscal year 2021.

• The first phase will be implemented countrywide through the Pradhan Mantri Garib Kalyan Yojana (PMGKY). It will immediately help scale-up cash transfers and food benefits using platforms of Public Distribution System (PDS) and Direct Benefit Transfers (DBT).

• In the second phase, additional cash and in-kind benefits based on local needs will be extended through state governments and portable social protection delivery systems.

———————————————

Mains Paper 2: International

Prelims level: World Bank for COVID-19 relief

Subscribe to Get Weekly updates

Get weekly Editorial analysis, Current affairs, One Liners important updates directly in your inbox. Subscribe now to get this month's one liner for FREE (Only for new Subscriber)