FM Nirmala Sitharaman to share details for 20 lakh crore Rs package: LIVE Updates

FM Nirmala Sitharaman to share details for 20 lakh crore Rs package: LIVE Updates

Dear Indian,

Yesterday PM Narendra modi addressed to the nation and announced a package of Rs 20 Lakh Crore for Atma Nirbhar India. Today Finance Minister Nirmala Sitharaman will going to address for expected share details for 20 lakh crore. The Rs 20 lakh crore package encompasses the government’s Rs 1.7 lakh crore package announced in March and the liquidity measures announced by the Reserve Bank of India for NBFCs and the financial sector.

The finance minister is expected to announce package for the MSME sector which has bore the brunt of the lockdown as sales have frozen and payments from bigger industrial units are overdue. A credit guarantee scheme could likely be announced.

In this article we will be covering live updates at 4 PM 13th May 2020 which will be important at the competitive exam point of view. you must have to be here in this page from 4PM.

♦How global economic packages compare (Value of stimulus as a share of country GDP)

• Japan: 21.1%
• US: 13%
• Sweden: 12%
• Germany: 10.7%
• India: 10%
• France: 9.3%
• Spain: 7.3%
• Italy: 5.7%
• UK: 5%
• China: 3.8%
• South Korea: 2.2%

♦Highlights 

• Five Pillars of growth

1. Economy
2. Infrastructure
3. Technology-driven systems
4. Demography
5. Demand

• Aatmanirbhar Bharat Abhiyan to spur growth and to build a self reliant India: Finance Minister
• Ease of doing business and compliance; global value chain integration, the mainstay of ‘atmanirbhar’ vision
• Finance Minister Nirmala Sitharaman recalls all the reforms initiated by the govt since 2014 , DBT for the poor: Direct benefits for the poor transferred directly to them in this difficult time

1. Microinsurance
2. Ujjwala Yojana
3. Ayushman Bharat
4. Swachh Bharat Abhiyan

• The first step taken by PM was providing a Rs 1.70 lakh crore PM Garib Kalyan Yojana scheme for welfare of poor
• For all those who have up to Rs 5,00,000 refunds have been cleared. Rs 14,00,000 taxpayers have benefitted: FM Nirmala Sitharaman

Today the tranche has about 15 different measures

1. Six of them for MSMEs
2. Two for Employee provident funds
3. Two for NBFCs
4. Two for MFIs
5. One to discoms
6. One to real estate
7. 3 tax related
8. One contractors

• Collateral-free automatic loan for MSMEs (3 lakhs crore)

1. Rs 3 lakh crore worth loans
2. For those firms with Rs 25 crore outstanding loans or annual turnover is over Rs 100 crores
3. 4 -year tenure on the loans
4. Moratorium of 10 months to be offered
5. 100% credit guarantee to banks and NBFCs on principal and interest
6. Offer valid until October 31,2020
7. no fresh collateral required
8. no extra fee to be charged

• For stressed MSMEs

1. Rs 20,000 crore liquidity through subordinate debt-based scheme
2. Govt to provide Rs 4,000 crore to CGTMSE for this

• Fund of funds

1. Infusing Rs 50,000 crore equity into MSMEs for those who are viable and eligible
2. Corpus of Rs 10,000 crore though mother-fund and daughter-fund framework
3. To help MSMEs expand capacity and eventually get listed

• Government to take up PF for firms with 100 staff, earning less than Rs 15,000
• Collateral free loan to be provided to SMEs with 12 month moratorium; 45 lakh units to benefit: FM on Rs 20-trillion special economic package
• Global tenders to be disallowed in government procurement upto Rs 200 crores

Relief to EPF

1. Liquidity relief to be given for all EPF established
2. Govt support towards EPF contribution extended by another 3 months – June, July, August
3. Relief of Rs 2,500 crores to be provided to benefit 70.22 lakh employees

• To provide more take-home salaries and also increase cash-in-hand for employers

1. Government to take up PF for firms with 100 staff, earning less than Rs 15,000
2. Statutory PF contribution reduced from 12% to 10%
3. For state PSUs, govt will continue to pay 12%, while govt staff pays 10%

• For NBFCs

1. Rs 30,000 crore special liquidity scheme announced
2. Investment to be made in primary & secondary investments
3. The debt papers will be fully guaranteed by government of India

• Government announces Rs 45,000 crore liquidity infusion through a Partial Credit Guarantee Scheme 2.0 for NBFCs

• For cash-desperate discoms

1. Emergency liquidity injection of Rs 90,000 crore
2. Against receivables, guarantees for which will be given by states
3. This is one-time liquidity infusion

• For contractors (railways, highways, PWD, etc)

1. All GoI agencies, such as railways, roadways, will provide 6 month extension to contractors
2. No cost extension of upto six months for govt contractors to comply with contract
3. Conditions construction work, goods and services contract, completion of work

• For real estate

1. The urban development ministry to issue advisory to states and UTs so that regulators consider the Covid-19 period an ‘act of god’
2. They will be able to extend all registered projects by up to 6 months
3. Using the force majeure clause suo motu they can extend registrations and completion dates if these were falling after March 25, 2020
4. Timelines under RERA to be extended

• Dates extended

1. Due date of all IT Return filings extended from July 31 to November 30
2. Vivaad se Vishwas scheme extended till December 31,2020
3. Date of assessments getting barred as on Sep 30, 2020 extended to December 31, 2020
4. Date of assessments getting barred as on March 31, 2021 extended to September 30, 2021

• Tax-related measures

1. From tomorrow, till March 31, 2021, TDS and TCS rates reduced by 25%
2. This will release Rs 50,000 cr. in the hands of people

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