FM Sitharaman's 5th And Last Tranche Of The Rs 20 Lakh Crore Stimulus

To contain the economic fall-out due to Covid 19 and leave liquidity headroom in the hands of individuals (if not adequate) from providing free food grains to migrant workers, measures for urban poor, farmers to increasing FDI in Defence to 74%, Modi's exorbitant Rs. 20 lakh programme has covered it all. Also, for salaried class, there will be more take home pay for 3 months as there has been announced a cut in EPF contrbution of both the employer and employee to 10% from the earlier 12% to the subscriber's EPF account.

FM Sitharaman's 5th And Last Tranche Of The Rs 20 Lakh Crore Stimulus Highlights

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May 17, 2020, 12:50 pm IST

Tranche 4 and 5

Viability Gap Funding - Rs. 8100 crore Additional MGNREGS allocation- Rs. 40000 crore

May 17, 2020, 12:45 pm IST

Tranche 3-

MFEs: Rs 10,000 crore PM Matsya Sampada Yojana: Rs 20,000 crore TOP to TOTAL: Rs 500 crore Agri infra fund: Rs 1 lakh crore Animal husbandry infra development fund: Rs 15,000 crore Promotion of herbal cultivation: Rs 4,000 crore Beekeeping initiative: Rs 500 crore

May 17, 2020, 12:44 pm IST

Tranche 2-

Free food grain supply for migrant workers for 2 months: Rs 3,500 crore interest subvention for MUDRA Shishu loans: Rs 1,500 crore Special credit facility for street vendors: Rs 5,000 crore Housing CLSS-MIG: Rs 70,000 crore Additional emergency WCF through NABARD: Rs 30,000 crore Additional credit through KCC: Rs 2 lakh crore

May 17, 2020, 12:39 pm IST

Tranche 1-

Emergency working capital facility for businesses including MSMEs: Rs 3 lakh crore Subordinate debt for stressed MSMEs: Rs 20,000 crore Fund of fund for MSMEs: Rs 50,000 crore EPF support for businesses and workers: Rs 2,800 crore Reduction in EPF rates: Rs 6,750 crore Special liquidity scheme for NBFCs, HFCs and MGIS: Rs 30,000 crore Partial credit guarantee scheme 2.0 for liabilities of NBFCs and MFIs: Rs 45,000 crore DISCOMS: Rs 90,000 crore reduction in TDS/TCS rates: Rs 50,000 crore

May 17, 2020, 12:38 pm IST

Break up of the Rs. 20 Lakh Crore Package

Revenue lost due to tax concessions announced since March 22: Rs 7,800 crore. PM Garib Kalyan Package: Rs 1,70,000 crore PM's announcement for health sector: Rs 15,000 crore

May 17, 2020, 12:24 pm IST

Borrowing Limit For States Increased To 5% from 3%

Borrowing to state has been increased to 5% from 3%. This is based on reforms related to one nation one ration card, ease of doing Business, power reforms, urban local bodies such that means of increasing revenue increase. So, this extended borrowing will be linked to specific reforms. From 3-3.5%, the 0.5% will be an unconditional increase. Next 1% to be released in 4 tranches of 0.25%, with each tranche linked to clearly specified, measurable and feasible reform actions. Additional 0.5% will be given if milestones are achieved in at least three out of the four reform areas.

May 17, 2020, 12:21 pm IST

State government and borrowing

States net borrowing ceiling for 2020-21 is Rs 6.41 lakh crore based on 3% of GDP. 75% thereof was authorised to them in March 2020 itself and timing is left to the states. States have so far borrowed only 14% of the limit authorised. 86% of the authorised borrowing remains unutilised. In view of the unprecedented situation, Centre has decided to accede to the request of states and increase the borrowing limits of states from 3% to 5% for 2020-21 only. This will give states extra resources of Rs 4.28 lakh crore.

May 17, 2020, 12:19 pm IST

Support To State Extended

As per BE, Rs. 46,038 crore in April has been granted to devolution of taxes to state government. Revenue deficit grants of Rs 12, 390 crore was given to states in due time in April. The funds under the State Disaster Relief Fund (SDRF) were released in advance (Rs 11,092 crore) in first week of April. Health Ministry released over Rs 4,113 crore for dirct anti-COVID activities. At the Centre's request, the RBI has increased the ways and means advance limit of states increased by 60 percent. Number of days states can be in continuous overdraft position increased from the earlier 14 days to 21 days now. Number of days states can be in overdraft in a quarter increased from 32 to 50 days.

May 17, 2020, 12:07 pm IST

Coherent Policy To Come Up For New Public Sector Enterprise

Public Sector enterprise will continue to play an important role in sectors and now as part of this strategic sectors will be notified. Also, private players will be able to participate in all sectors. In strategic sectors, at-least one enterprises will remain in the public sector but the private sector will also be allowed. In other sectors, PSEs will be privatised So to reduce redundant administrative costs, the number of enterprises shall be between 1 and 4, others will be privatised or merged or brought under holding companies.

May 17, 2020, 12:00 pm IST

Companies Now List Securities Directly On Foreign Jurisdiction

Indian public companies will be allowed to list securities in foreign jurisdiction directly.

May 17, 2020, 11:56 am IST

Decriminalises most section in Companies Act

Compundable offences can be tried under internal adjudicating level. 7 compoundable offences will be dropped and 5 will be taken up under alternate mechanism. So, will provide support in ease of doing business.

May 17, 2020, 11:53 am IST

IBC Related Measures

Any debted situation for companies due to Covid 19 will not be included as defaults. No fresh insolvency proceeding shall be initiated up to 1 year. For MSME a special insolvency framework shall be notified The minimum threshold for insolvency for MSME has been increased to Rs. 1 crore from Rs. 1 lakh.

May 17, 2020, 11:50 am IST

Steps For Education

PM E-Vidya Programme Will be launched There will be one marked channel for each class starting from Class 1-12. Radio and podcast will be put to good use. Visually impaired will all be provided e-content support Manu Darpan- Psychological support extended to children who are seeing such hard times during Covid 19, families, teacher.

May 17, 2020, 11:44 am IST

Ramping Up the health infra

We are now seeing the opportunity and so health initiatives are put in place All districts to have Infectious Diseases Block Wellness centre in Tier II and Tier III cities. Aatma nirbhar at such times in terms of diagnostic and testing labs and hospitals

May 17, 2020, 11:41 am IST

MNERGA

An additional allocation of Rs. 40000 crore to MNREGA over and above the BE

May 17, 2020, 11:36 am IST

Listed measures on health, technology driven steps for education during Covid and easing of compliance

Also the steps that have been done so far including insurance for health workers, taking ahead e-Sanjeevani tele medicine, capacity building, Aarogya Setu app that has been as successful as UPI payments app. On the compliance front, board meetings, AGMs can be conducted through technological aid, in 216 cases 44% have been recovered through IBC. Swayam Prabhar channels are running for providing education to the poor class during Covid 19 times. Also, private DTH operators are being reached so as to provide education to all.

May 17, 2020, 11:27 am IST

7 Areas To be Focussed On Today

- MNREGA -Healthcare & education -Business during Covid -Decriminalisation of Companies Act -Ease of doing business -PSUs and policies State govt and resources

May 17, 2020, 11:23 am IST

EPF Members Benefited Through Pandemic Advance Facility

Pandemic advance facility helped several EPF subscribers through non-refundable claims that have been processed amid the calamity.

May 17, 2020, 11:17 am IST

Technological driven DBT benefit provided

Direct benefit transfer of Rs 2000 each has been done to 8.19 crore PM KISAN beneficiary during lockdown period

May 17, 2020, 11:13 am IST

Was a Duty And Not Extended Any Favour While Doling Out Rs. 1.7 Lakh Crore Package For Poor

Free Grains for 3 months has been provided. Also, thanked NAFARD, FCI were thanked for their relentless efforts even amid the lockdown.

May 17, 2020, 11:11 am IST

Begins the address by quoting Modi's earlier words

In her opening address, FM today reiterated PM Modi's words and said 4 L's land, labour liquidity and law have all been the focus area in the package today. So as to build a Aatma Nirbhar India

May 17, 2020, 11:00 am IST

Govt. Defended Inclusion Of Rs. 6.5 Lakh Crore Liquidity Steps In The Package

Earlier on Friday, the government defended its move to include Rs 6.5 lakh crore liquidity steps in the COVID-19 stimulus package by giving a rationale that most economies have combined fiscal and monetary measures for tackling the crisis.

May 17, 2020, 10:51 am IST

Focus On Infrastructure Push And PSU Companies

After yesterday's measures on structural reforms in growth-oriented sectors for higher production, investment and more jobs opportunities, the government's focus shall today be on giving push to infrastructure and to offer relief to PSUs.