The third time is attraction. But in economics, it also shows the failure of the first two attempts. Can the Miracle minister expel the country from crisis?
Finance Minister Nirmala Sitharaman made another announcement at a press meeting on Thursday ‘Colossal’ incentive package Reviving the Indian Economy. Ms. Sitharaman started after highlighting the achievements of the earlier packages and then added a new brand of ₹ 2,64,080 crore to the series of stimulus packages. While briefing, FM said that the government planned to spend 29,87,641 crore, which includes 12,71,200 crore from RBI, on the revival mission of the Indian economy. This figure is equivalent to 15 percent of India’s total GDP.
See: India’s Finance Minister Nirmala Sitharaman announced the third stimulus package
The Government of India plans to spend 29,87,641 crores on the economic revival mission, a figure equal to 15 percent of India’s total GDP.
Here is a list of measures aimed at providing a bulwark against the epidemic.
Atmanirbhar Bharat Rozgar Yojna
Atmanirbhar Bharat 3.0 focuses on job creation in the Indian market. The government plans to encourage more recruitment in the formal sector by providing subsidies to organizations registered with the EPFO. To explain this in the context of the common man, let’s answer one question at a time.
What is the scheme?
under which Atmanirbhar Rozgar YojanaOrganizations registered with EPFO will be given subsidy to employ people at a monthly salary of less than ₹ 15,000 per month. It also includes people who lost TMT between March and September 2020. The condition is that these employees should be recruited from 1 October 2020 to 30 June 2021.
what is the catch?
Companies aiming to avail the scheme are required to appoint at least 2 such employees if their total number of employees is less than 50. For companies with a total workforce of more than 50, the minimum recruitment should be 5.24 percent of the EPF. The contribution for such employees for two years will be paid by the government to an organization with less than 1000 employees. If the number of employees is more than 1000, then 12 percent subsidy amount of EPF contribution.
What is subsidy?
Under the incentive package of FM Nirmala Sitharaman, the government will contribute for two years to the EPF contribution of the eligible employees which is basically paid by the organizations.
How long does the plan last?
The scheme starts retrospectively from October 1, 2020. Organizations established with EPFO can avail the scheme till 30 June 2021. These subsidies will be deposited directly into Aadhaar linked EPFO accounts.
How many organizations and employees are expected to be involved in this scheme?
The formal sector of the scheme is expected to comprise more than 95 per cent and 65 per cent employees of all organizations.
Emergency loan liquidity guarantee scheme, which is a non-collateral fund-based working capital term loan, Extended to 31 March 2021For some areas. As identified by the Kamath Committee, 26 stressed areas and the healthcare sector will be provided one-year deferment and four years repayment. Institutions with arrears ranging from ₹ 50 crore to ₹ 500 crore will be eligible for the extended scheme. An additional loan of up to five years will be provided till February 29, 2020 with a backlog of 30 days with a one-year deferment.
Product Linked Incentive (PLI) Scheme
The plan to boost manufacturing, which was earlier announced for three sectors, has now been extended to ten major sectors. FM Sitharaman said, “So now, 13 sectors are part of the PLI scheme. This includes the sunrise sector, labor intensive sectors and the areas through which India hopes to join the global value chain. I hope this will give a big boost to the Indian economy and domestic employment. “
Prime Minister Housing Scheme (Urban)
PMAY-Urban is being defined by the Finance Minister as a job creator for around 78 lakh people, increasing the profit manifold by increasing the demand for cement and steel. The scheme boasts of an additional outlay of 18,000 crores which surpasses the proposed ₹ 8,000 crores in the earlier budget announcement.
Relief for builders and home buyers
Section 43 CS of the Income Tax Act provides for a difference of 10 percent between the circle rate and the agreement value of the property. FM Sitharaman introduced incentive package Increases the gap to 20 percent by June 30, 2021. This benefit applies to residential units with a maximum value of ₹ 2 crore. The objective of the scheme is to promote the purchase of real estate by the middle class and reduce the pending list.
NIIF Equity Infusion
The National Investment and Infrastructure Fund, the first fund set up by the government for sole infrastructure investment, piles up funding for infrastructure activities. Therefore, the government plans to use an equity amount of ₹ 6,000 crore for NIIF’s loan platform. This will invite private equity. NIIF has invested ₹ 2,000 crore in its own lending platform.
Subsidy on fertilizers
A subsidy of ₹ 65,000 crore will be provided to farmers to increase production. The Finance Minister aims to increase consumption from 500 lakh MT in 2016-17 to 673 lakh MT in 2020-21.
PM Garib Kalyan Rozgar Yojana
There is another increase in outlay of existing schemes. PM Garib Kalyan Rozgar Yojana. This outlay is ₹ 20,000 crores. Earlier, an incentive of ₹ 61,000 crore for MNREGA and ₹ 40,000 crore for Atma Nirbhar Bharat 1.0 was announced, of which 50 73,504 have already been spent, which led to 251 crore person days of employment in the informal sector according to Ms. Sitharaman.
For exim bank
As a measure to boost export trade, an amount of ₹ 3,000 crore will be given to EXIM Bank, which aims to promote the Line of Credit scheme.
Capital and industrial expenditure
The Finance Ministry aims to increase capital and industrial expenditure by introducing additional infusion of ₹ 10,200 crore. It has a multiplier effect and is a major source of employment generation.
R&D for Kovid-19 vaccine
Irus 900 million has been devoted to research and development of coronovirus vaccines. Under the security mission, the money will be given to the Department of Biotechnology for research and this amount does not include the logistics and cost of preparing the vaccine. This was an unavoidable expense under the introduction of incentive package by FM Nirmala Sitharaman.