Finance Minister Nirmala Sitharaman on Thursday (May 14) announced the second set of measures that are part of a Rs 20 lakh crore economic stimulus package announced by Prime Minister Narendra Modi to support the economy. While FM’s announcement on Wednesday focused on MSMEs, NBFCs, Discoms and direct tax measures, today’s announcement was focused on agriculture, which employs around 50% of the country’s population. FM is also addressed the concerns of migrant labours through various measures.

Here are key highlights of FM Sitharaman’s May 14 announcement

1. Today’s announcement will focus on migrant workers, street vendors, small farmers. In total, there will be nine announcements 

2. Within hours of announcing the lockdown, the PM Gareeb Kalyan Yojana was launched for the poor and that’s not enough. We will do more. We are announcing more. Don’t look it in silos: FM

3. About 3 crore farmers have availed agricultural loans at concessional loans amounting to Rs 4 lakh crore. These farmers have been given moratorium. Interest subvention on these loans was given till March. Now it is getting extended till June.

4. 25 lakh new Kissan Credit cards sanctioned with a limit of Rs 25,000 crore

5. 63 lakh loans of Rs 86,6000 crore approved by NABARD, to Cooperative banks and RRBs between March 1, 2020 to April 20, 2020

6. Refinancing of Rs 29,000 crore provided by NABARD to Co-operative banks and RRBs in March 2020

7. Support of Rs 4,200 crore provided under Rural Infrastructure Development Fund to states during March 2020 for rural infrastructure

Support for Migrant and Urban Poor during last 2 months

1. Rs 11,000 crores given by the Centre sent to states to set up shelter for migrants and provide food and shelter

2. There are shelter homes which are under the shelter for urban homeless category. But in those shelter for urban homeless, 3 meals are provided entirely at the cost of the central government. We are conscious and attending to migrants

3. In last 2 months, during COVID period, we reached out to urban poor, including migrants. It has permitted states to utilise state disaster response funds to set up shelter for migrants and provide them food and water. Rs 11,000 cr were sent for this purpose from the Centre

4. 7,200 new SHG groups formed for the poor

MGNREGS Support to recruiting migrants

1. 14.62 crore man-days of work generated till May 13 2020. An amount of Rs 10,000 crore has been spent on this

2. Work offered to 2.33 crore job seekers

3. 40-50% more registered for the programme as compared to May last year

Labour Codes-Benefits for workers

1. Plan afoot to make minimum wages universal for all workers. At present it applies to only 30% workers, says Sitharaman

2. Social security for Gig workers and platform workers

3. Reskilling fund introduced for retrenched workers

4. Annual health check-up for employees

5. Fixation of minimum wage to benefit employees

6. Portability of welfare benefits for migrant workers
   

Free food grain supply to migrants for 2 months

1. Migrants in various states require foof grain assistance

2. Migrants who are neither NFSA nor state Card beneficiaries in the state they are sanctioned, will be provided 5 kg of grains per person and 1 kg chana per family per month for two months

3. About 8 crore migrants are expected to benefit from this

4. Within three months 67 crore beneficiaries in 23 states, covering 83% of PDS population will be covered by national portability by August 2020

5. 100% National portability will be achieved by March 2021

6. All the State/UTs will complete full FPS automation by March 2021 

Affordable rental accommodation for migrant workers

1. Converting government-funded housing in the cities into affordable rental housing complexes under PPE mode

2. This will come under PMAY scheme

3. Industries will be incentivised to develop such housing complexes

Rs 1,500 crore interest subvention for MUDRA-Sishu Loans

1. Government will provide interest subvention of 2% for prompt payees for a period of 12 months for loans up to Rs 50,000

2. Loans worth Rs 1.62 lakh crore have been issued under MUDRA-Sishu loans

Benefits for Street Vendors

1. 50 lakh street vendors can avail loans up to Rs 10,000 under this scheme

2. Govt will launch a special scheme for this in the next one month and will provide Rs 5,000 crore liquidity under the scheme

Rs 70,000 crore boost to housing sector and middle-income group through extension of CLSS

1. Government will extend the existing scheme till March 31, 2021. Another 2.5 lakh families can avail benefit under this scheme in the next one year

2. This will also boost the real estate and construction sector, says FM

3. This scheme will lead to Rs 70,000 crore investment in the real estate sector

Rs 6,000 crore employment push using CAMPA funds

1. This fund will create job opportunities in tribal areas

Rs 30,000 crore additional emergency working capital funding for farmers through NABARD

1. ​This is in addition to the Rs 90,000 crore support already provided by the government for small and marginal farmers

2. This money will be provided by NABARD and RRBs to states

Rs 2 lakh crore concessional credit boost to 2.5 crore farmers through credit cards

1. This will enable farmers to get institutional credit at concessional rates

2. This benefit will be provided through Kisan Credit Cards

3. Fisherman and animal husbandry farmers will be included under this scheme

 

CHECK WHAT IS IN STORE FOR MSMES AND BUSINESSES – CLICK HERE

 

__________________________________________________________________________________________________________

We’re listening: 

For any query, support or feedback, reach us at India Tax & Legal Compliance or WA us at +91-9230033070 or Call us at 1800-102-7550 for any support/query/feedback.

 

In these troubled times -COVID-19, we, at Taxmantra Global urge you to stay safe – social distancing, personal hygiene and health care are of utmost importance! Stay safe!

 

__________________________________________________________________________________________________________