The Finance Minister Nirmala Sitharaman highlights: The second set of measures for economic revival focuses on migrant workers, small farmers, tribal and street vendors.
The Finance Ministry announced the second installment of measures being taken to revive the economy hit by novel coronavirus pandemic, on Thursday. The measures are a part of Rs 20 lakh crore economic package announced by Prime Minister Narendra Modi on Tuesday.
Separately, the government also said that PM CARES Fund Trust has decided to allocate Rs 3,100 crore for the fight against COVID-19, out of which nearly Rs 2000 crore will be earmarked for purchasing ventilators and Rs 1000 crore for migrant labourers.
- PM Modi said that the first set of measures announced by the finance minister will enhance liquidity, empower entrepreneurs and strengthen their competitive spirit, while addressing various issues faced by businesses, especially MSMEs on Wednesday.
- In the first part of announcements, Finance Minister Nirmala Sitharaman announced many measures to help MSMEs hit by the lockdown, now set to be extended beyond May 17.
- She had also announced a reduction in employee and business contribution towards EPF for three months and a 25 per cent cut in TDS and TCS rates to put more money in people’s pockets.
- The measures announced on Wednesday also included relief for the real estate sector, discoms and contractors.
- Finance Minister Nirmala Sitharaman announced her 2nd set of economic stimulus package to benefit migrant workers, street vendors, small farmers.
- She announced nine economic measures today has nine announcements – three for migrants, one for small traders, one for street vendors, one housing, one for employment generation in the tribal sector and two for small farmers.
- Finance Minister requested the media and people to have patience to hear to the announcements. “If we do not speak about a certain component today, it does not mean that the government has forgotten about any particular segment, more initiatives are being announced,” FM Sitharaman said.
- Interest subvention and prompt repayment incentive on crop loans due from March 1 has been extended to May 31.
- Around 3 crore marginal farmers had received loans worth Rs 4 lakh crore at low rates. They were also given a moratorium by RBI.
- 25 lakh new Kisan credit card holders have been sanctioned loans worth Rs 25,000 crore.
- Government has permitted state governments to utilise SDRF for setting up shelter for migrants and providing them food and water etc. Rs 11,000 crore given to states for taking care of migrant workers and others 3 meals per day for urban homeless, entirely at expense of central government.
- Liquidity support for farmers and the rural economy has been happening even during the last two months.
- 62 lakh farmers have availed loans aggregating Rs 86,600 cr.
- Refinancing of Rs 29,000 cr provided by NABARD to cooperative banks and regional rural banks in March 2020.
- Support of Rs 4200 cr provided under rural infrastructure fund to states during March for rural infrastructure.
- Additionally, the working capital limit of Rs 6700 crores are sanctioned for procurement of agriculture produce to state government entities since March.
- Labour codes changed for the benefit of workers.
- Social security schemes for gig workers and platform workers.
- Re-skilling fund introduced. Extension of ESIC coverage pan India in all districts.
- Annual health check-up for employees.
- Portability of welfare benefits, Finance Minister announces.
- Finance Minister announces MGNREGA support to returning migrants.
- More than 14.6 crore MNREGA person days have been generated till yesterday, 40 per cent-50 per cent higher compared to last May.
- Work has been offered to 2.33 crore wage seekers in 1.87 lakh gram panchayats. 12,000 SHGs have produced more than 3 crore masks and 1.2 lakh litres of sanitizers during Covid-19 period.
- Revolving funds are being provided to SHGs through PAISA portal.
- 7,200 new SHGs for urban poor have been formed during the last two months..
- Free food grain supplies to migrants for the next two months.
- Earlier the government had announced free grains to the poor who came under National Food Security Act, but now the government has now announced Rs 3,500 cr to ensure free food grain supply migrant workers who do not hold any ration card.
- The grain will be distributed by the states.
- We are working to make Right to Minimum Wages universal (now, applicable only to 30 per cent of workers).
- Remove regional disparity in minimum wages, through a National Floor Wage Concept which can be accepted by all states.
- The government to support nearly 50 lakh street vendors via Rs 5000 cr special credit facility, Finance Minister said. The government will provide Rs 10,000 as initial working capital. Digital payments will be incentive.
- The government announces Rs 1,500 crores interest subvention for MUDRA-Shishu loans.
- Small businesses that have taken Shishu loan, which of Rs 50,000 max, will be provided interest subvention of 2% for prompt payees for 12 months.
- The government to launch under PM Awas Yojna affordable rental housing complexes for migrant workers/urban poor.
- This will convert government-funded housing in the cities into affordable rental housing complexes under PPP model.
- The FM introduced ‘one nation one ration’ card which will have a national level portability. The government aims to make the card available to 100 per cent PDS population by March 2021.
- The government announces a 2 lakh crores concessional credit boost to 2.5 crore through Kisan credit cards.
- Fishermen and animal husbandry farmers will also be included in the Kisan credit card scheme which would enable farmers to gain access to institutional credit at the concessional interest rate.
- To benefit around 3 crore farmers, mostly small and marginal farmers, the government has announced Rs 30,000 crores additional emergency working capital funding through NABARD
- To create job opportunities for Tribals /Adivasis -Plans worth Rs 6000 crores to be approved shortly under Compensatory Afforestation Management & Planning Authority Funds
- For middle-income group for people between the income of Rs 6 lakh to 18 lakh, the government has extended the credit-linked subsidy scheme up to March 2021; 2.5 lakhs middle income families to benefit during 2020-21.
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