Listing how a series of measures have helped people sustain during the Corona period so far, such as ₹10,025 crore to 20 crore women through Jan Dhan, EPF withdrawal provision benefitting 12 lakh people resulting in₹3,660 crore withdrawn from EPF etc, the Finance Ministry has announced further steps in various respects such as health, and education as part of the final tranche of the Aatma Nirbhar Bharat package mentioned by Prime Minister Narendra Modi.
Extra Funds for MGNREGA
An additional ₹40,000 crore under MGNREGS has been allocated. This move will help generate nearly 300 crore person days in total, and is expected to help migrants who returned to their villages.
Under PM eVIDYa programme, multi-mode access to digital/online education will be launched immediately. Further India’s top 100 universities will be permitted to automatically start online courses by 30th May 2020.
The mix of ongoing efforts and future commitments such as strengthening labs and research are put on display.
— PIB India #StayHome #StaySafe (@PIB_India) May 17, 2020
Relief to Corporate Affairs
Debts due to COVID19 will not be included in the category of ‘default’. Further, 7 compoundable offences altogether dropped and 5 to be dealt with under alternative framework. The amendment will de-clog the criminal courts and NCLT.
Moreover, key reforms for Ease of Doing Business are in the pipeline including direct listing of securities by Indian public companies in permissible foreign jurisdictions.
Public Sector Enterprises
A list of strategic sectors requiring presence of Public Sector Enterprises in public interest will be notified. In these strategic sectors, at least 1 enterprise to remain in public sector but private sector will be allowed. In other sectors, PSEs shall be privatised.
Assistance to States
Despite the reduction in Centre’s revenue share dipped of the Corona situation, the grants and revenue sharing to the States will remain as decided. The limit of borrowing against Gross State Domestic Product (GSDP) for states has been raised from 3% to 5% for 2020-2021 only, which will lead to an additional ₹4.28 Lakh Crores. However, part of the borrowing will be linked to specific reforms like increasing job creation through investment and promoting urban development, health and sanitation.
The Break-up of ₹20 Lakh Crore
Finance Minister Nirmala Sitharaman has also provided a break-up of the economic reliefs provided so far responding to Corona situation.
- The stimulus of ₹1,92,800 crores which included Garib Kalyan Yojana was given even before the PM spoke of the new economic package.
- The break-up of the first tranche of announcements, amount to ₹5,94,550 crores under economic package.
- The stimulus provided in the second tranche of the economic package total to ₹3,10,000 crores.
- Announcements worth ₹1,50,000 crores were made in the third tranche, and the stimulus provided in the fourth & fifths tranches of the economic package amounts to ₹48,100 crores.