Covid Stimulus Package: In response to the biggest economic crisis since 1979 triggered by the Covid-19 pandemic and the subsequent lockdown, the Union Finance Minister Nirmala Sitharaman announced Rs 20 lakh crore economic stimulus package. From the Health Sector to the privatization of public sector enterprises, Nirmala Sitharaman took the aggressive approach in healing the economy from the hit taken by the coronavirus pandemic.
The package of Rs 20 lakh crore has been divided between measures that the government is taking now and the measures that it has taken earlier. The measures announced by Nirmala Sitharaman in her 5 days of economic stimulus press conferences sum up to Rs 11,02,650 crore while the measures that were taken earlier along with the measures taken by the Reserve Bank of India sum up to Rs 9,94,403 crore. Here’s the break-up of ₹20 lakh crore ‘Aatm Nirbhar Bharat’ stimulus package:
Covid Stimulus Package Break-up
|Part 4 & 5||48,100|
|RBI Measures (Actual)||8,01,603|
Earlier measures: ₹1,92,000 crore
- Revenue lost due to tax concessions announced since March 22: ₹7,800 crore
- PM Garib Kalyan Package: ₹1,70,000 crore
- PM’s announcement for the health sector: ₹15,000 crore
Tranche 1: ₹5,94,550 crore
- The five-part stimulus package announced beginning May 13 comprised ₹5.94 lakh crore in the first tranche that provided credit line to small businesses and support to shadow banks and electricity distribution companies.
- Emergency working capital facility for businesses including MSMEs: ₹3 lakh crore
- Subordinate debt for stressed MSMEs: ₹20,000 crore
- Fund of fund for MSMEs: ₹50,000 crore
- EPF support for businesses and workers: ₹2,800 crore
- Reduction in EPF rates: ₹6,750 crore
- Special liquidity scheme for NBFCs, HFCs and MGIS: ₹30,000 crore
- Partial credit guarantee scheme 2.0 for liabilities of NBFCs and MFIs: ₹45,000 crore
- DISCOMS: ₹90,000 crore reduction in TDS/TCS rates: ₹50,000 crore
Tranche 2: ₹3,10,000 crore
- The second tranche included free foodgrain to stranded migrant workers for two months and credit to farmers, totalling ₹3.10 lakh crore.
- Free food grain supply for migrant workers for 2 months: ₹3,500 crore
- interest subvention for MUDRA Shishu loans: ₹1,500 crore
- Special credit facility for street vendors: ₹5,000 crore
- Housing CLSS-MIG: ₹70,000 crore
- Additional emergency WCF through NABARD: ₹30,000 crore
- Additional credit through KCC: ₹2 lakh crore
Tranche 3: ₹1,50,000 crore
- Stimulus under Part-3 which included incentives for Food Micro Enterprises, totalling 1.5 lakh crore.
- MFEs: ₹10,000 crore
- PM Matsya Sampada Yojana: ₹20,000 crore
- TOP to TOTAL: ₹500 crore
- Agri infra fund: ₹1 lakh crore
- Animal husbandry infra development fund: ₹15,000 crore
- Promotion of herbal cultivation: ₹4,000 crore
- Beekeeping initiative: ₹500 crore
Tranche 4+5: ₹48,100 crore
- The fourth and fifth tranches that dealt mostly with structural reforms totalled to ₹48,100 crore.
- Viability gap funding: ₹8,100 crore
- Additional MGNREGS: ₹40,000 crore
This Covid relief package puts bold reforms to make India self-reliant so that any other crisis that may emerge in the future could be efficiently tackled.