On Wednesday, Union Finance Minister Nirmala Sitharaman gave details of the first instalment of the Rs 20 lakh crore special economic package to revive the Coronavirus-battered economy.
Here are the key takeaways:
Under Pradhan Mantri Garib Kalyan Yojana (PMGKY), Rs 1.70 Lakh crore relief package for the poor has been announced.
- Insurance cover (Rs 50 Lakh per health worker)
- For the next 3 months, 80 crore poor people would be given the benefit of 5 kg wheat or rice per person and 1 kg pulses for each household
- For next three months, around 20 crore women Jan Dhan account holders to get Rs 500 per month
- Gas cylinders (free of cost) would be provided to 8 crore poor families for the next 3 months
- Increase in MNREGA wage to Rs 202 a day
- Ex-gratia of Rs 1,000 to 3 crore poor senior citizen, poor widows and poor Divyang
- As Indian MSMEs and other corporate firms often face unfair competition from foreign companies, hence, global tenders will be disallowed in government procurement tenders up to Rs 200 crores.
- Rs 15,000 crores sanctioned for Emergency Health Response Package
- Rs. 2500 crore EPF Support for business & workers for 3 more months ( which effectively translates into liquidity relief to 3.67 lakh establishments and for 72.22 lakh employees)
- New Definition of MSMEs
- e-market linkage for MSMEs
- Fintech will be used to enhance transaction-based lending
- Collateral free loan of Rs 3 lakh crores for MSMEs. This step is expected to benefit 45 lakh units
- Rs 20,000 crores subordinate debt for stressed MSMEs
- Rs. 90,000 Cr. Liquidity Injection for Power Distribution Companies (DISCOMs)
- Rs 30,000 crore Special Liquidity Scheme for NBFCs, HFCs and MFIs as they find it difficult to raise money in debt markets.
- Over Rs 52,000 crore has been transferred to approximately 41 crore Jan Dhan account holders so far.
- Period of Vivad se Vishwas Scheme (a scheme for settling tax disputes between the IT department and individuals) without paying any penalty/interest, will be extended to 31st Dec, 2020. The earlier deadline was June 30.
- Due date of all IT Return filings extended to November 30.
- Reduction of 25% of existing rates of TDS & Tax Collection at Sources (TCS) till March 31, 2021.