Finance Minister, Smt. Nirmala Sitharaman on 13th of May 2020, Wednesday at 4:00 PM via a press conference announced an Economic Package of Rs. 20 Lakh Crores. The Economic Package has been announced to fight the COVID-19 crisis. The Hon’ble PM, while addressing the nation on the 12th of May made an announcement regarding the Economic Package worth Rs 20 lakh crores which is equivalent to 10% of India’s GDP.
He gave a clarion call for the Self-Reliant India Movement. He also outlined five pillars of Atma Nirbhar Bharat –
d) Vibrant Demography
Hon’ble FM started her speech saying, Prime Minister Shri Narendra Modi had laid out a comprehensive vision in his address to the Nation. She further stated that after spending considerable time, the Prime Minister has himself ensured that inputs obtained from widespread consultation form a part of the economic package in fight against COVID-19.
“The focus or goal of the Economic Package is to build a self-reliant India and will be factors for building Atma Nirbhar Bharat Abhiyan”.
Here are the Key point’s announcements made by the FM:
- Rs 3 lakh crore Emergency Working Capital Facility for Businesses, including MSMEs
- Rs 20,000 crore Subordinate Debt for Stressed MSMEs
- Rs 50,000 crore equity infusion through MSME Fund of Funds
- New Definition of MSME and other Measures for MSME
- No Global tenders for Government tenders of upto Rs 200 crore
- Extending the Employees Provident Fund Support for business and organised workers for another 3 months for salary months of June, July and August 2020
- EPF Contribution to be reduced for Employers and Employees for 3 months to 10% from 12% for all establishments covered by EPFO for next 3 months
- Rs. 30,000 crore Special Liquidity Scheme for NBFC/HFC/MFIs
- Rs. 45,000 crore Partial credit guarantee Scheme 2.0 for Liabilities of NBFCs/MFIs
- Rs 90,000 crore Liquidity Injection for DISCOMs
- Relief to Contractors given by extension of up to six months for completion of contractual obligations, including in respect of EPC and concession agreements
- Relief to Real Estate Projects the registration and completion date for all registered projects will be extended up to six months.
- Tax relief to business as pending income tax refunds to charitable trusts and non-corporate businesses and professions to be issued immediately
- Reduction in Rates of ‘Tax Deduction at Source’ and ‘Tax Collected at Source” by 25% for the remaining period of FY 20-21
- Due Dates for various tax related compliances extended.