- The first tranche of India's economic stimulus was worth ₹5.9 lakh crore.
- The second tranche focusses on migrant workers, small traders, small farmers, etc.
- There are nine announcements in all in the second tranche of stimulus.
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The target audience for the second tranche of stimulus and the number of steps announced today.
Migrant workers | 3 |
Farmers | 2 |
Shishu loan under Mudra scheme | 1 |
Housing | 1 |
The top highlights from the details of the stimulus package unveiled by
- Free food grain supply to migrants for 2 months. ₹3,500 crore outlay for this scheme. Migrants who don’t have either the National Food Security Act card or any state card will get 5 kilograms of grains per person and 1 kilogram of chana per family per month for two months.
- One nation, One ration card: National portability of ration cards will be available. Any person can avail the public distribution system in any state across India. This will benefit 670 million people (83% of population) and the others will be covered by March 2021. About 8 crore migrants will benefit from this and ₹3500 crore will be spent on this intervention.
- Govt will launch a scheme an affordable rental housing for migrant workers and urban poor under public-private partnership mode. Both state governments and companies can also be incentivised to create similar housing for their workers under the Pradhan Mantri Awas Yojana.
- Interest subvention of 2% for a period of 12 months. It will be available for those who pay Shishu loans (of ₹50,000 or lower) under the Mudra scheme. Outlay for the interest relief: ₹1,500 crore. Total loans given by the government in this category so far ₹1.62 lakh crore to over 30 million people.
- Street vendors will be given an initial working capital of up to ₹10,000. The scheme will be launched within a month. The scheme will support nearly 5 million street vendors. Special credit facility of ₹5,000 crore.
- For those who have annual income of ₹6 lakh to ₹18 lakh, an existing credit-linked subsidy scheme will be extended till March 2021. This will help boost demand for affordable housing. 250,000 middle income families expected to benefit from this scheme.
- To use funds ₹6,000 crore from the National Compensatory Afforestation Fund to boost employment of tribals in forestry work.
- ₹30,000 crore outlay for small and marginal farmers, in addition to the ₹90,000 crore which will be provided by NABARD through the normal refinance route. Will benefit around 3 crore farmers who need money either in the post rabi crop period or for sowing kharif crop.
- Minimum wages - presently only applicable to 30% workers.
- Appointment letters for all and annual health checkup for all.
- Extension of ESIC coverage pan-India.
- Portability of welfare benefits for migrant workers.
- Mandatory ESIC coverage in hazardous industries even if they have less than 10 employees.
- Re-skilling fund introduced for retrenched employees.
- All occupations opened for women.
- Provision of gratuity on completion of one year of service as against 5 years.
Stimulus measure | Amount announced | Additional government expense | Reason for NIL impact on government |
Cash transfer to women | ₹30,000 crore | ₹30,000 crore | |
Additional pension payments | ₹9,000 crore | ₹9,000 crore | |
Cash transfer to rural labourers | ₹10,000 crore | ₹10,000 crore | |
Income support for small farmers | ₹17,400 crore | - | It's an existing scheme that has been expedited |
Additional food subsidy | ₹30,000 crore | ₹30,000 crore | |
Free cooking gas | ₹10,000 crore | ₹10,000 crore | |
Contribution to pension fund | ₹5,000 crore | ₹5,000 crore | |
Life insurance for health workers etc. | ₹1,500 crore | ₹1,500 crore | |
Building worker fund | ₹31,000 crore | - | Existing fund is getting reused |
District mineral fund | ₹25,000 crore | - | Existing fund is getting reused |
Total | ₹1.69 lakh crore | ₹95,500 crore |
These are the steps taken so far between March 2020 and now —
₹4,200 crore |
₹6,700 crore |
Disaster response fund under state governments (incl. centre's contribution) used to build shelters and provide food to migrants | ₹11,000 crore available in this fund |
Mahatma Gandhi Rural Employment Guarantee Scheme | 146.2 million days of work generated for 23.3 million wage seeks in 187,000 gram panchayats and wages were also raised. Budgeted outlay is at ₹10,000 crore but it will increased, if needed. |
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