Finance Minister Nirmala Sitharaman has put the entire details related to the special economic package of more than Rs 20 lakh crore in front of the country. The government has announced this package to combat Kovid-19, help people and industries affected by lockdown and make the country self-reliant. Prime Minister Narendra Modi announced this special economic package in his address to the nation on 12 May 2020. This economic package is equivalent to about 10 percent of the country’s GDP. The Finance Minister had been sharing the details of the package through a press conference every day since Wednesday. In such a situation, it will be in the minds of all of you that on what things the government is spending such a huge amount.
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In such a situation, we are presenting the complete breakup of this special financial aid package to you:
Measures were taken before the recently announced package
1. Reduction in revenue due to tax exemption from 22 March 2020 – Rs 7,800 crore
2. Pradhan Mantri Garib Kalyan Package (PMGKP) – Rs 1,70,000 crore
3. Announcements made by the Prime Minister for the health sector – Rs 15,000 crores
It is noteworthy that the government announced the Prime Minister’s Poor Welfare Package in the last week of March. In this, it was announced to provide free grains and pulses to PDS cardholders. Simultaneously, it was announced to send direct help to women Jan Dhan account holders, poor elderly and differently-abled.
The complete breakup of the recently announced economic package is as follows:
First-day announcements
1. Emergency Working Capital for MSMEs and Businesses – Rs.3,00,000 crore
2. Sub-ordinate debt for MSMEs facing pressure – Rs 20,000 crore
3. Fund of Funds for MSME – Rs 50,000 crore
4. Assistance to business and contractors through EPF contribution – Rs 2,800 crore
5. EPF rate reduction – Rs 6,750 crore
6. Special Liquidity Scheme for NBFC / HFC / MFI – Rs 30,000 crore
7. Partial Credit Guarantee Scheme 2.0 – 45,000 Crore for Liability of NBFCs / MFIs
8. Government to infuse capital in power distribution companies – Rs 90,000 crore
9. TDS / TCS rate reduction – Rs 50,000 crore
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Second-day announcements
1. Supply of free grain to migrant laborers for two months – Rs 3,500 crore
2. Interest subvention for Mudra Shishu Loan – Rs 1,500 crore
3. Special loan facility for street vendors – Rs 5,000 crore
4. Housing CLSS-MIG – Rs 70,000 crore
5. Provision of additional emergency working capital through NABARD – Rs 30,000 crore
6. Additional loan facility through KCC – Rs 2,00,000 crore
Apart from these, a total of Rs 08,01,603 crore of cash has come into the system due to measures taken by RBI. Thus, the total relief package of the government is Rs 20,97,053 crore.