Nirmala Sitharaman’s announcement today: Finance Minister Nirmala Sitharaman announces the final leg of the stimulus package: Highlights
These are the highlights of Sitharaman’s leadership:
Finance Minister announces measures under seven segments
The seven segments are: MGNREGS; Health: rural and urban, including education; companies and Covid-19; Business decriminalization law; the ease of doing business; state governments and resources related to state governments; public sector companies.
* MGNREGS: An additional Rs 40 billion will be allocated to MNREGS to create additional jobs in the rural sector. Many workers have returned to their villages, this will ensure that those who wish to enroll in MNREGA can receive jobs.
* HEALTH: health reforms and initiatives have been implemented, public health spending must be increased, basic investment must be increased for health and wellness centers in rural and urban areas. Public health levels will be set at block levels. Blocks of infectious disease hospitals will be established in each district. Public health laboratories will be installed in each block (not only in the district), to save the insufficiency of the laboratory network in rural areas. Great emphasis on the creation of hospitals and laboratories, with public and private funds.
* EDUCATION: The PM eVidya program, a multi-mode online digital learning education platform that will launch immediately. This will include DIKSHA, which is ‘a nation a platform’ facility, for school education. Each class will have 1 television channel assigned. Manodarpan, an emotional and mental support program for children and families, is being launched under PM eVidya.
* BUSINESS and Covid-19: special insolvency framework for MSMEs. The minimum threshold to initiate solvency procedures rising from Rs 1 lakh to Rs 1 crore, an important step, will help isolate MSMEs, will bring an ordinance for this. Debts related to Covid-19 will not be considered in the category of defaults, in the Insolvency and Bankruptcy Code. New insolvency proceedings will not be initiated for up to one year.
* COMPANY DECRIMINALIZATION LAW: seven aggravated crimes are suspended under the Companies Law and five crimes will be dealt with in an alternative framework. This will facilitate the process and allow for resolution at the local level, the FM said. Compounded crimes can now be tried under an internal adjudication mechanism, it will help to decongest the criminal courts, which is absolutely important.
* EASY TO DO BUSINESS: Businesses can now list their values directly in foreign jurisdictions. If companies list their non-convertible bonds on the stock market, from now on they will not become listed companies.
* PUBLIC SECTOR BUSINESS POLICY: The government will announce a new public sector policy and a list of strategic sectors that require the presence of PSEs in the public interest will be notified. In strategic sectors, where public sector companies will be present, at least one and no more than 3 or 4 PSE will be present, the private sector also allowed to participate.
* STATES OF SUPPORT States have seen a sharp decline in revenue, we have consistently expanded aid to states. State deficit subsidies of Rs 12,390 crore were awarded on time in April and May despite the Center’s limited resources; total tax refund of 46,038 rupees in April.
More about Covid-19
The center decides to increase the debt limits of the states
States have seen a sharp decline in revenue, we have always extended aid to states. State deficit subsidies of Rs 12,390 crore were awarded on time in April and May despite the Center’s meager resources; total tax refund of 46,038 rupees in April.
So far, States have only borrowed 14% of the limit that is authorized to them. 86 percent of the limit remains unused. The Center has decided to increase the states’ debt limits from 3% to 5% of the State’s Gross Domestic Product (GSDP) by 2020-21.
The breakdown of five tranches
* The stimulus of Rs 1.92,800 crore was given even before the Prime Minister spoke of the new economic package.
* The breakdown of the first tranche of ads, amounting to Rs 5.94.550 crore under the economic package.
* The stimulus provided in the second tranche of the economic package: Rs 3.10 billion rupees.
* The stimulus of Rs 1.50 billion rupees in the third tranche of the total economic package of Rs 20 lakh crore.
* The stimulus provided in the fourth and fifth tranches of the economic package amounts to Rs 48.1 billion.
* The general stimulus package under Bharat Atmanirbhar (self-sufficient) amounts to Rs 20.97,053.
Other announcements made by the finance minister
* Now information about the migrant movement to be online. The National Information System for Migrants will capture information on the movement of migrants. The central online platform has been developed by NDMA to facilitate the smooth movement of migrant workers: FM
* The Pradhan Mantri Garib Kalyan package used technology to make direct transfers of benefits to people, we were able to do what we did due to the initiatives taken in recent years: FM
* The one-time transfer of 2,000 rupees has reached 8.19 million crore, total amount of 16,394 crore. NSAP recipients earned Rs 1,405 million in the first installment and Rs 1,402 million in the second installment, a target of Rs 3 billion almost reached.
* Pulses were also given 3 months in advance. I appreciate the concerted efforts of the FCI, NAFED and the states, which give pulses and grains in large quantities, despite the logistical challenges: FM
* Rs 20 million in Jan Dhan’s account with women earned Rs 10,025 crore. 2.2 million construction and construction workers earned Rs 3,950 crore. 6.81 million people obtained free LPG cylinders. 12 lakh EPFO holders got online withdrawal of advance: FM
* Sitharaman began the presser quoting Prime Minister Narendra Modi, who had previously said, “As a nation today we are at a crucial juncture” and “such a great disaster has also provided an opportunity.” She said the prime minister had said that “land, work, liquidity and the law have been included in the aid package.”
Video: Farmers, women will benefit the most from the government’s Rs 20 lakh crore economic package: Nirmala Sitharaman