Finance minister Nirmala Sitharaman announces last tranche of stimulus package: Highlights

NEW DELHI:

Finance minister Nirmala Sitharaman

on Sunday addressed the media to announce the last tranche of

Rs 20 lakh crore stimulus package

aimed to rescue a struggling economy whose woes have been augmented by the coronavirus pandemic.


Here are the highlights of Sitharaman's address:

Finance minister announces measures under seven segments
The seven segments are: MGNREGS; Health - rural and urban, including education; businesses and Covid-19; decriminalization of Companies Act; ease of doing business; state governments & resources related to state governments; public sector enterprises.

* MGNREGS—Additional ₹ 40,000 crore to be allocated to MNREGS to create additional jobs in the rural sector. A lot of workers have gone back to their villages, this will ensure that those wishing to enrol into MNREGA can be provided jobs.

* HEALTH—Health reforms and initiatives have been put in place, public health expenditure to be increased, grass-root investment to be increased for health and wellness centres in both rural and urban areas. Public health levels will be set up at block levels. Infectious disease hospital blocks will be set up in every district. Public health labs to be set up in every block (not just in district), to bridge inadequacy of lab network in rural areas. Big emphasis on setting up hospitals and labs, with both public and private funding.



* EDUCATION—PM eVidya programme, a multi-mode digital online learning education platform to be launched immediately. This will include DIKSHA, which is 'one nation one platform' facility, for school education. Each class to have 1 earmarked TV channel. Manodarpan - a programme for emotional and mental support to children and families - is being launched, under PM eVidya.

* BUSINESSES & Covid-19—Special insolvency framework for MSMEs to be brought in. The minimum threshold for initiating solvency proceedings being raised from Rs 1 lakh to Rs 1 crore, a major step, will help insulate MSMEs, will bring in an ordinance for this. Debts related to Covid-19 shall not be considered under the category of defaults, under Insolvency and Bankruptcy Code. No fresh insolvency proceedings will be initiated up to one year.

* DECRIMINALISATION OF COMPANIES ACT —Seven compoundable offences under Companies Act being dropped and five offences to be dealt under an alternative framework. This will make the process simpler and enable resolution at the local level said the FM. Compoundable offences can now be tried under an internal adjudication mechanism, will help de-congest criminal courts, which is absolutely important.

* EASE OF DOING BUSINESS —Companies can now list their securities directly in foreign jurisdictions. If companies list their non-convertible debentures in the stock market, from now on, they do not thereby become listed companies.

* PUBLIC SECTOR ENTERPRISE POLICY: Government to announce a new public sector policy and a list of strategic sectors requiring the presence of PSEs in the public interest will be notified. In strategic sectors, where public sector enterprises will be present, at least one & not more than 3 or 4 PSEs will be present, the private sector also allowed to participate.

* SUPPORTING STATES The states have seen a sharp decline in the revenue, we have consistently extended help to the states. Revenue Deficit Grants to states of Rs 12,390 crores was given on time in April and May despite Centre's stressed resources; devolution of taxes of Rs 46,038 in April given fully.

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Centre decides to increase borrowing limits of states
The states have seen a sharp decline in the revenue, we have consistently extended help to the states. Revenue Deficit Grants to states of Rs 12,390 crores was given on time in April and May despite Centre's stressed resources; devolution of taxes of Rs 46,038 in April given fully.

States have so far borrowed only 14 per cent of the limit which is authorised to them. 86 per cent of the limit remains unutilised. Centre has decided to increase the borrowing limits of states from 3 per cent to 5 per cent of Gross State Domestic Product (GSDP) for 2020-21.

The breakup of five tranches

* The stimulus of Rs 1,92,800 crore was given even before the PM spoke of the new economic package.

* The break up of the first tranche of announcements, amounting to Rs 5,94,550 crore under the economic package.

* The stimulus provided in the second tranche of the economic package- Rs 3,10,000 crore.

* The stimulus of Rs 1,50,000 crores in the third tranche of the total Rs 20 lakh crore economic package.

* The stimulus provided in the fourth and fifths tranches of the economic package amounts to Rs 48,100 crore.

* The overall stimulus package under the Atmanirbhar (self-reliant) Bharat amounts to Rs 20,97,053.

Other announcements made by the finance minister

* Now information on the movement of migrants to be online. National Migrant Information System will capture information on the movement of migrants. The central online platform has been developed by NDMA to facilitate smooth movement of migrant workers: FM

* Pradhan Mantri Garib Kalyan Package used technology to do direct benefit transfer to people, we could do what we did because of the initiatives taken during the last few years: FM

* One-time transfer of Rs 2,000 has reached 8.19 crore farmers, total amount Rs 16,394 crore. NSAP beneficiaries got Rs 1,405 crore in first installment and Rs 1,402 crore in 2nd instalment, target of Rs 3,000 crore nearly achieved.

* Pulses too were given 3 months in advance. I appreciate the concerted efforts of FCI, NAFED and states, giving pulses and grains in huge quantities, despite logistical challenges: FM

* 20 crore Jan Dhan account holding women got Rs 10, 025 crore. 2.2 crore building and construction workers got Rs 3,950 crore. 6.81 crore people got free LPG cylinders. 12 lakh EPFO holders got online withdrawal of advance: FM

* Sitharaman started the presser quoting Prime Minister Narendra Modi who had earlier said, "as a nation today we stand at a crucial juncture" and "such a big disaster has brought forth an opportunity" as well. She said that the PM had said, "land, labour, liquidity and law all have been included in the relief package."