Finance Minister Announces Last Leg Of Rs.20 lakh crore Ecnomic Package
Finance Minister Nirmala Sitharaman completed announcing the Rs.20 lakh crore Atmanirbhar Abhyan economic packages with the fifth tranche of allocations, unveiling many reforms including funding and liquidity measures to improve livelihood for the poor as well as boost the economy.
To help the poor, the Modi government today increased the MGNREGA budget by an additional Rs.40,000 crore. Sitharaman also informed that more reforms are ahead announcing that public sector enterprises or PSUs will exit non-strategic areas and private companies would be allowed to enter all sectors.
The finance minister also detailed the break-up of the Rs.20 lakh crore package which includes liquidity measures of Rs.8 lakh crore announced by the RBI earlier as well as the PM Gareeb Kalyan Yojna.
Highlights:
-Whatever you do will be little under the given circumstances: FM on economic package.
-FM on economic package: We have taken suggestions from everywhere and done what we think is the best.
-“I want to tell the Opposition party that on the issue to migrants we all must work together. We are working with all states on this issue. With folded hands, I ask Sonia Gandhi ji that we must speak & deal with our migrants more responsibly”: FM Sitharaman
-“We want uninterrupted supply of power”: FM
-Sitharaman takes a jibe at Rahul Gandhi’s roadside chat with migrant labourers saying, “Is this not drama?”
-Let all Congress-ruled state governments get more trains to bring more migrant labourers: FM
-All states are trying to co-operate: FM on movement of migrants through trains
-The definition of “covid-related debt” will be announced soon in a notification: FM
-I have not announced anything on bank mergers, clarifies Sitharaman
-RBI measures of Rs.801,603 included in Rs.20 lakh crore economic package
-Total stimulus package is worth Rs.20,97,053 crore
-Fourth and fifth tranche is worth Rs.48,100 crore
-Stimulus measures announced in third part: Rs.1.5 lakh crore
-Second tranche was worth Rs.310,000 crore
-Economic package tranche 1 was worth Rs.594,500 crore
-Stimulus measures from earlier announcements was worth Rs.192,800 crore: Sitharaman
-Revenue loss due to tax concession: Rs.7,800 crore
-This will give states extra resources of Rs.4.28 lakh crore: FM
-Center has decided to accede to the request and increased borrowing limits of states from 3% to 5% for 2020-21.
-States have so far borrowed only 14% of the limit authorized but 86% of the authorized borrowing remains unutilized.
-Revenue deficit grants to states worth Rs.12, 390 crore given on time in April and May, despite Centre’s stressed resources.
-Devolution of taxes worth Rs.46,038 crore in April was given fully as if Budget estimates were valid, even though actual revenue shows unprecedented decline from Budget estimates.
-Number of PSUs in strategic sectors will be maximum four. Others will be privatized or merged.
-In certain sectors, PSUs will be privatized.
-New policy to broadly categorize strategic sectors
-Public sector enterprise policy: All sectors will be open to private sectors also while PSUs will play an important role in defined areas.
-Lower penalties for all defaults for small companies, one-person companies, producer companies and start-ups.
-Companies listing only NCDs on stock exchange will not be regarded as listed companies.
-Direct listing of securities in foreign jurisdictions permitted: FM
-The amendments in Companies Act will de-clog criminal courts and NCLT.
-Decriminalization of Companies Act violations involving minor technical and procedural defaults, majority of compoundable offences sections to be shifted to internal adjudication mechanism: FM
-Minimum threshold to initiate insolvency proceedings raised to Rs.1 crore from Rs.1 lakh. This will largely insulate MSMEs.
-No fresh insolvency proceedings upto 1 year: FM
-Debts related to Covid shall be excluded from IBC: Sitharaman
-Top 100 universities will be permitted to automatically start online courses by May 30 this year.
-Education: Extensive use of radio, community radio and podcasts
-One TV channel will be earmarked for every class from 1 to 12.
-Sitharaman will give the break-up of the Rs.20 lakh crore economic package shortly.
-Health and wellness centres in urban and rural areas will be increased: FM
-Public health expenditure will be increased: FM
-Govt to allocate additional Rs.40,000 crore for MGNREGA to provide employment boost. It will help generate 300 crore person days in total.
-Online education during Covid: Provision for live telecast of interactive channels with experts through Skype.
-The central govt has already announced Rs.15,000 crore healthcare funds. to fight Covid-19.
-7 steps to be announced today — MGNREGA, health (rural and urban), education, business and Covid, decriminalisation of Companies Act, ease of doing business, public sector enterprises and state governments’ resources.
-Our attempts is to make sure that the environment is alright for everyone to ensure their business is alright.
-Sitharaman turns focus to livelihoods.
-12 lakh EPFO subscribers withdrew Rs.6,060 crore under the Covid pandemic withdrawal.
-Jan Dhan account: 20 crore women got more than Rs.10,000 crores.
– PM Gareeb Kalyan Package Yojna: Direct benefit transfer has reached 8.9 crore farmers. Amount disbursed Rs.16,394 crores.
