Key Takeaways from FM Nirmala Sitharaman’s Press Conference on Rs 20 lakh crore economic package

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.
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