Covid-19: Nirmala Sitharaman to brief media again at 4 pm today on Centre’s Rs 20 lakh crore package
On Wednesday, Sitharaman gave some details of the economic relief plan, stressing on a slew of measures to help micro, small and medium enterprises.
Finance Minister Nirmala Sitharaman on Thursday will again brief the media at 4 pm about the Centre’s economic rescue package of Rs 20 lakh crore in fiscal and monetary measures to support an economy battered by a seven week-long lockdown to fight the coronavirus.
In an address to the nation on Tuesday, Prime Minister Narendra Modi said the package was equivalent to 10% of India’s gross domestic product, and was aimed at the multitudes of workers and the businesses who were left economically devastated because of the prolonged shutdown.
On Wednesday, Sitharaman gave some details of the economic relief plan , stressing on a slew of measures to help micro, small and medium enterprises.“Beginning today, for the next few days, I shall be coming out with the entire details [of the package] before you,” she said. “We shall not forget that we do have a responsibility towards the poor, needy, the migrants workers, divyang [disabled] and the aged of the country.”
The government changed the definition of micro, small and medium enterprises and said it will take six major steps to help them. The finance ministry said the first step was the introduction of Rs 3 lakh crore collateral-free automatic loans for businesses. These loans have to be returned within four years. For the first year, the principal will not have to be repaid, Sitharaman said.
The Centre reduced the Employee Provident Fund contribution for private employers by 2% for three months and said it will increase take-home salaries. It announced that only Indian companies will be allowed in government tenders up to Rs 200 crore. The finance ministry also extended the due date for filing Income Tax returns to November 30, among other measures.
In his address to the nation, Modi had said that the economic package, advanced for the Aatmanirbhar Bharat Abhiyan or self-reliant India scheme, will make India self-sufficient. The prime minister added that the package was meant for micro, small and medium enterprises, farmers, labourers and businesses. The package would also include the government’s recent announcements to support some key sectors as well as recent measures rolled out by the Reserve Bank of India.
After the prime minister’s announcement, Sitharaman said that the package would serve as a reform stimulus. “This shall not be just a financial package, but a reform stimulus, a mindset overhaul, and a thrust in governance,” she tweeted.
The coronavirus pandemic and weeks of lockdown have severely damaged India’s economy. In March, the government had announced a stimulus package worth Rs 1.70 lakh crore for the poor and vulnerable sections of the society.