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 –
- 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
The Government of India has taken a great stand-in reviving the loss incurred by the economy. With special reference to the MSMEs and the loss that these sectors have faced during the outbreak of the pandemic. While we all hope that these measures will greatly improve the current situation and help the business sectors to cover up for their losses.
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