Business & Finance

FM Nirmala Sitharaman Presser: States Can Now Borrow 5% Of GSDP

by TestHostEntry

Finance Minister Nirmala Sitharaman unveils the details of the Rs 20 lakh cr economic package declared by PM in his address to the nation.

New Delhi| Finance Minister Nirmala Sitharaman in the press conference on Sunday released details of the last section of the Rs 20 lakh crore economic package announced by PM.

Yesterday’s initiatives focus on eight sectors — coal, minerals, defence production, civil aviation, power distribution, social infrastructure, space and atomic energy.

The mega stimulus package of Rs 20 Lakh Crore is being released by the Central government to help restore the economy hit by the pandemic.

The announcement has already soared the markets, with the benchmark equity market indices on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) opening nearly 4% higher.

Today, announcements will be made about 7 steps taken by the govt – MGNREGA, health & education related steps, business & COVID, decriminalization of Companies Act, ease of doing business, public sector enterprises, state govt resources, Finance Minister said.

Key Highlights From FM Nirmala Sitharaman’s Presser:

  • Pulses were given 3 months in advance. I appreciate concerted efforts of Food Corporation of India, National Agricultural Cooperative Marketing Federation of India&states, giving pulses& grains in huge quantities, despite logistical challenges: FM Nirmala Sitharaman
  • Pradhan Mantri Garib Kalyan package used technology to do direct benefit transfer to people. We could do what we did because of the initiatives taken during the last few years: FM
  • One-time transfer of Rs 2,000 has reached 8.19 crore farmers, total amount Rs 16,394 crore. NSAP beneficiaries got Rs 1,405 crore in first instalment & Rs 1,402 crore in the second instalment, a target of Rs 3,000 crore nearly achieved.
  • 20 crore Jan Dhan account holding women got Rs 10,025 crores. 2.2 crore building and construction workers got Rs 3,950 crores. 6.81 crore people got free LPG cylinders and12 lakh EPFO holders got online withdrawal of advance.
  • Shramik special trains were started when it was possible for workers to move, states were requested to bring workers to stations, 85% cost was borne by the Central government.
  • Govt has taken a number of health-related steps for COVID19 containment- Rs 15000 crore announced for states, essential items&testing labs&kits along with rolling out of teleconsultation services, the launch of Arogya Setu app&protection to health care workers with adequate PPEs.
  • Online education during COVID19: Swayam Prabha DTH channels launched to support and reach those who do not have access to the internet; now 12 channels to be added.
  • The Government is working on a mission mode on the next phase of ‘ease of doing business’ reforms.

  • More than Rs 4,113 crores have been released to states. Insurance cover of Rs 50 lakhs per person has been announced for healthcare workers & Epidemic Diseases Act was amended for protection of healthcare workers: Finance Minister
  • The government will now allocate an additional Rs 40,000 crores to MGNREGS to provide employment boost: FM
  • 44% recovery achieved since the inception of Insolvency and Bankruptcy Code
  • Health expenditure will be increased&investment at the grassroots level will be ramped up for health&wellness centres, with a particular focus on aspirational districts. All districts will have infectious diseases block in hospitals. Public health labs will be set up at block levels.

Also Read: “Stand With India & Modi”; Trump Says US Will Donate Ventilators To India

  • Technology-driven education to be the focus- PM eVIDYa programme for multi-mode access to digital/online education to be launched immediately. Top 100 universities will be permitted to automatically start online courses by 30th May 2020
  • Timely action was taken during COVID-19 to reduce compliance burden under various provisions of Companies Act. Board meetings were allowed to be online, rights issues can be done digitally, major reform in corporate governance.
  • Debts due to COVID19 will not be included in the category of ‘default’.
  • Decriminalisation of Companies Act defaults; 7 compoundable offences altogether dropped and 5 to be dealt with under alternative framework. The amendment will de-clog the criminal courts and NCLT.
  • Now, Indian public companies can list their securities directly in foreign jurisdictions. Private companies which list Non-Convertible Debentures on stock exchanges will not be regarded as listed companies.
  • Govt to announce a new public sector policy- a list of strategic sectors requiring the presence of PSEs in the public interest will be notified. In strategic sectors, at least 1 enterprise to remain in the public sector but the Pvt sector to be allowed. In other sectors, PSEs to privatised.
  • The states have seen a sharp decline in the revenue, we have consistently extended help to the states. Revenue Deficit Grants to states of Rs 12,390 crores was given on time in April&May despite Centre’s stressed resources; devolution of taxes of Rs 46,038 in April given fully. Centre has decided to increase borrowing limits of states from 3 per cent to 5 per cent of Gross State Domestic Product (GSDP) for 2020-21
  • The stimulus of Rs 1,92,800 crores was given even before the PM spoke of the new economic package.
  • The break up of 20 Lakh Crores:

https://twitter.com/ANI/status/1261915815797854209

  • To promote state-level reforms, part of the borrowing will be linked to specific reforms like increasing job creation through investment and promoting urban development, health and sanitation

(Inputs from ANI)

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