Sitharaman, answering a query on the impact of the stimulus on the fiscal deficit, said the government is “making sure money goes to the right place. The government is not splurging, we are being responsible in spending.”
Even before Prime Minister Modi’s speech, the government had announced stimulus worth Rs 1.92 lakh crore, Sitharaman said giving break-up of Rs 20-lakh crore package. It included:
Revenue lost due to tax concessions since March 22 worth Rs 7,800 crore
PM Garib Kalyan Package was Rs 1.7 lakh crore
PM’s announcement for health sector was Rs 15,000 crore
States’ borrowing limit increased to 5 percent from 3 percent of the state GDP for FY21, finance minister says. It’s aimed at allowing states to raise funds amid Covid-19 crisis. States will get extra resources of Rs 4.28 lakh crore, she said. This, however, is linked to meeting certain targets.
3 to 3.5 percent will be unconditional increase
Another 1 percent will be released in four tranches of 0.25 percent with each linked to clearly specified, measurable and feasible reform activities
Further 0.5 percent will be given as soon as milestones are achieved in at least three out of four reform areas
All sectors will be opened to private companies while state-owned enterprises will play an important role in defined areas, the finance minister says.
A new policy will specify strategic sectors requiring presence of state-run companies in public interest will be notified
In the notified sectors, at least one public sector enterprise will be present but private sector will also be allowed
In other sectors, state-run companies will be privatised. To minimise wasteful administration costs, a number of enterprises in strategic sectors will only be one to four, others will be privatised, merger of brought under holding companies
The Ministry of Company Affairs will clarify on Covid-related debt definition, Sitharaman said later answering queries. The secretary, MCA will issue a notification with specific date where debt incurred to be treated as ‘Covid-period’, she said.
The government will allocate an additional Rs 40,000 crore MGNREGA to provide work to migrants returning home, Sitharaman said. This will help generate 300 crore person days in total employment and is over and above the Rs 61,000 crore allocated in the budget.
Sitharaman said Sunday’s reforms will be the last set of measures after Prime Minister Narendra Modi’s announcement of an economic package to boost the economy. The reforms announced so far included land, labour, liquidity and laws.
Finance Minister Nirmala Sitharaman will today announce the fifth set of measures under to help the economy recover from the impact of Covid-19 crisis. Through the week, she unveiled four tranches of measures for various sectors. On Saturday, she focused on . On Wednesday, the measures were aimed at supporting small businesses, non-banking financial firms
Here are the top highlights so far:
New Rs 1 lakh crore agriculture infrastructure fund to be established.
A new scheme worth Rs 10,000 crore aimed at formalisation of micro food enterprises.
Allocated Rs 20,000 crore for fishermen through the Pradhan Mantri Matsya Sampada Yojana which was announced in the Union Budget 2020.
Another fund of Rs 15,000 crore for developing animal husbandry infrastructure has will be set up.
Amendments will be brought to the Essential Commodities Act to deregulate foods like cereals, edible oils, oilseeds, pulses, onions and potatoes.
Agriculture marketing reforms will be implemented through a new central law that will remove barriers to inter-state trade.
Farmers will be given price and quality assurance through facilitative agriculture produce.
The steps announced on Saturday focused on structural reforms for sectors including metals and mining, atomic energy, space, civil aviation and social infrastructure. Some of these were announced earlier as well.
