PM Modi’s 20 Lakh crore Stimulus Package!
PM Modi recently announced a stimulus package of Rs 20 Lakh Crore to revive the ravaging Economy. PM Modi said that this package is 10% of India’s GDP and will focus mainly on the vulnerable sections, labor, including SMEs, cottage industry, etc.
Soon after this announcement, The Finance Minister, Nirmala Sitharaman, announced the set 1 of this package, which included 16 measures and gave a clear picture of Rs. 13 lakh Crore.
The Finance Minister gave the definite breakup of the 20 lakh Crore package.
The highlights of Nirmala Sitharaman’s press conference:
- FM said they had taken all the possible suggestions from anywhere possible and did what they thought is best.
- FM requested Sonia Gandhi and the opposition party to stand united on the issue of migrants. She confirmed that the central government is working together with the states for this matter.
- FM said that the government wants an uninterrupted power supply.
- She sneered Rahul Gandhi’s roadside chat with migrants and tagged it as drama.
- She said-“Let all Congress state governments get more trains to bring more migrant laborers.”
- She further went on to confirm that all states are co-operation for the movement of migrants via trains.
- She also said that the definition of ‘COVID-related debt’ will soon be notified to the citizens.
- She clarified her side and said that she had not made any announcement regarding bank mergers.
- RBI’s contribution adds up to ₹801,603 in the ₹20 lakh crore economic package.
- The worth of the entire package is ₹20,97,053 crore. The fourth-fifth art of this package is worth ₹48,100 crores.
- The very first portion of the package is ₹594,500 crore.
- The second and third portions of the package are ₹310,000 crores and ₹1.5 lakh crore, respectively.
- The revenue loss caused by tax concession is ₹7,800 crore.
- The center has decided to raise the borrowing limits of the states from 3% to 5% for 2020-2021.
- So far, sates have utilized only 14% of the limited resources. 86% remains unutilized.
- Despited the stressed resources of center, ₹12,390 crore revenue deficit grants were given to the states in April-May.
- There will only be 4 PSUs at max in the market. Others will either be privatized or merged.
- New policies are made to classify the strategic sectors/industries broadly.
- Public sector enterprise policy says that all sectors will be open to the Private sector, whereas PSUs will also play a vital role in specific areas.
- Now, there will be low penalties for the defaults by small companies, one-person companies, etc.
- FM said that thee direct listing of the foreign jurisdiction is allowed.
- Fm said that the COVID-19 related debts would be excluded from IBC.
- Top 100 universities will be starting online courses from 30 May.
- There will be extensive use of radio technology and podcasts in the field of education.
- A TV channel will be earmarked for grades 1-12.
- She also confirmed that she would be giving the breakup of 20 Lakh crore shortly.
- She ensured that the Health and wellness factor would be enhanced in both rural and urban areas.
- Center will allot an extra ₹40,000 crore for MGNREGA (1) so that there is a boost in employment.
- Online education will be sharpened during COVID-19.
- There will be an announcement of 7-steps- MGNREGA, health & wellness, education industry, business, decriminalizing the Companies Act, ease of doing business, public sector companies, and state governments’ resources.