Final Details of Stimulus Measures Announced by FM Nirmala Sitharaman: Also includes 8 Lakh Crore Liquidity Measures by RBI

Stimulus Measures Package Breakup

Monday, 18th May 2020

Culminating tranche details of the 20 lakh crore economic stimulus package announced by the prime minister a few days back, were released by Finance Minister Nirmala Sitharaman on Sunday.

The "Atma Nirbhar Bharat Abhiyan" package that was allocated to deal with economic repercussions of the ongoing coronavirus pandemic, includes Rs. 8.01 lakh crore previously announced by the RBI as liquidity measures. Measures that were announced by the government earlier also includes the PM Garib Kalyan scheme amounting to Rs 1,92,800 crore.

This is the fifth and final share of the package that was announced by Sitharaman who then went on to explain the details. The stimulus measures which is intended to prop the failing economy back on its feet, totals to Rs. 20,97 lakh crore now.

Details of the five-part tranche that were announced beginning May 13 are as follows:

• The first part comprised of Rs. 5.94 lakh crore and was directed towards offering credit line to small businesses along with supporting banks and electricity distribution companies.

(Items in this list include, Emergency W/C facility for businesses including MSMEs, Fund of funds for MSMEs, Reduction in EPF rates, Reduction in TDS/TCS rates, etc.)

• The second tranche encompasses help measures for stranded migrants and includes free food grain for them for two months along with credit to farmers. The amount totals to Rs. 3.10 lakh crore

(Items in this list include, Liquidity injection for DISCOMs, Special liquidity schemes for NBFC/ HFC/MFIs, Subordinate debt for Stressed MSMEs, etc.)

• The third tranche comprises of a total of Rs. 1.5 lakh crore and is expected to be spent on Agri infrastructure and other initiatives for agriculture and allied sectors.

(Items in this list include Interest subvention for MUDRA Shishu loans, Special credit facility to street vendors, Additional credit through KCC, etc.)

• The fourth and fifth tranches totals to Rs. 48,100 crore and will deal mainly with structural reforms.

(Items in this list include Food Micro enterprises, Pradhan Mantri Matsya Sampada Yojna, Promotion of Herbal Cultivation, Beekeeping initiative, Animal Husbandry Infrastructural Development Fund, etc.)

Source: NDTV