Top highlights from Finance Minister Nirmala Sitharaman's second tranche of COVID-19 stimulus
- 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.
SEE ALSO: Finance Minister Nirmala Sitharaman reveals the details of Modi's ₹20 lakh crore stimulus package
The target audience for the second tranche of stimulus and the number of steps announced today.
|Shishu loan under Mudra scheme||1|
The top highlights from the details of the stimulus package unveiled by Finance Minister Nirmala Sitharaman on May 14:
- 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 —
|NABARD refinanced loans in March||₹29,500 crore|
|Rural Infrastructure Development Fund (under NABARD)||₹4,200 crore|
|State governments sanctioned amount to procure agricultural produce||₹6,700 crore|
|Agricultural loans between March 1 and April 30||₹86,600 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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