Finance Minister Nirmala Sitharaman on Thursday released the economic stimulus as part of Atmanirbhar 3.0 stimulus measures to boost economic growth.
The stimulus consists of job creation and relaxations in urban housing taxes as the Finance Minister has released multiple programmes for the same.
“RBI predicts a strong likelihood of the Indian economy returning to positive growth in Q3:2020-21, ahead by a quarter of the earlier forecast,” Finance Minister Nirmala Sitharaman said.
“I would like to announce a few new measures in the series of stimulus announcements we have been doing, quite a few indicators showing a distinct recovery in the economy,” she said.
“There has been very good progress on ‘One Nation-One Ration Card’ in 28 states covering 68.8 crore beneficiaries,” she said.
Labour Ministry with the Finance Ministry and other concerned ministries are working together closely with the States, and the work has commenced on creating a portal for migrant workers. Rs 25,000 crores have been disbursed to farmers from Additional Emergency Working Capital Funding through NABARD, Finance Minister told.
“Credit boost has been given to 2.5 crore farmers through Kisan Credit Cards, Rs 1.4 lakh crores has been distributed to farmers.”
“Markets are on a record-high & India’s foreign exchange reserves are at $560 bn. India has made a strong comeback economically. RBI has said that India will do better in Q4. So the mood in the country, as well as Moody’s rating for India, has improved,” Minister of State Finance Anurag Thakur said.
“Rs 7,227 crores disbursed under the Special Liquidity Scheme for NBFCs/HFC,” Finance Minister Nirmala Sitharaman told.
“Under the Emergency Credit Liquidity Guarantee Scheme, a total amount of Rs 2.05 lakh crores has been sanctioned to 61 lakh borrowers, out of which Rs 1.52 lakh crores has been disbursed,” she said.
“SBI Utsav cards being distributed, under the festival advance scheme announced on 12th Oct. 11 states sanctioned Rs 3,621 crores as an interest-free loan towards capital expenditure,” she added.
“Rs 1,32,800 crores have gone as income-tax refunds to 39.7 lakh taxpayers.”
“Pradhan Mantri Rozgar Protsahan Yojana was implemented up to 31.03.2019. It had covered all sectors and is expected to run for 3 years. So even if someone joined the scheme on 31.03.2019, they would be covered under that existing scheme from then three years.”
“Establishments registering with EPFO after the commencement of Scheme to get subsidy for all new employees. Scheme to be operation till 30th June, 2021.”
“Up till today about Rs 8300 Crores have been disbursed to the beneficiaries. There are about 1,52,899 establishments which are covering 1,21,069 odd beneficiaries under PM Rozgar Protsahan Yojana.”
“Aatmanirbhar Bharat Rozgar Yojana being launched to incentivise creation of new employment opportunities during Covid recovery. Every EPFO registered orgs – if they take in new employees or those who had lost jobs b/1 March 1 & Sept 30 – these employees will get benefits,” she said.
“The existing Emergency Credit Line Guarantee Scheme extended till 31st March 2021,” she added.
“If new employees of requisite number are recruited from October 1, 2020 to June 30, 2021, the establishments will be covered for the next two years.”
“Guaranteed credit support for 26 stressed sectors identified by the Kamath Committee. Original ECLGS had one year of moratorium and 4 years of repayment, the new scheme will have 1-year moratorium and 5 years of repayment.”
“We are launching credit guarantee support scheme for healthcare sector and 26 sectors stressed due to Covid. Entities will get additional credit up to 20% of outstanding credit, repayment can be done in five years’ time (1 year moratorium + 4 years repayment),” she said.
“10 new Champion sectors will now be covered under the Production Linked Incentives Scheme to boost the competitiveness of domestic manufacturing. It is expected to give a significant boost to economic growth and domestic employment.”
“Rs 18,000 Crores will be provided over and above the budget estimate which was mentioned in the Budget 2020-21 under Pradhan Mantri Awas Yojana. particularly for the urban areas.”
“This extra budgetary resource being provided will help 12 Lakh houses to be grounded & 18 Lakh houses will get completed as a result.”
“Support for Construction & Infrastructure-Performance security on contract to be reduced to 3% instead of 5%. Earnest Money Deposit will not be required for tenders and will be replaced by Bid Security Declaration. Relaxations will be given till 31st December 2021,” Finance Minister said.
“For primary residential real estate sales, relief on the difference between circle rate & agreement value up to 20% vs 10% earlier. We expect clearance of inventories through this step.”
“Rs 65,000 crores being given to ensure adequate availability of fertilisers to farmers to enable timely availability of fertilisers in the upcoming crop season,” Anurag Thakur said.
“We are now giving Rs 6000 Crores of Equity to Debt Platform of NIIF (National Infrastructure & Investment Fund) where private equity participation will also come in. NIIF itself has invested Rs 2000 Crores.”
“So, by 2025 they will have to fund projects to the extent of Rs 1,10,000 Crores. We are creating this avenue for them to do it even through Debt Market.”
“An additional outlay of Rs 10,000 crores will be provided for PM Garib Kalyan Rozgar Yojana in the current financial year, to boost rural employment.”
“Rs 3,000 crores will be released to EXIM Bank for promotion of project exports through Lines of Credit under IDEAS Scheme. Supported projects cover Railways, power, transmission, road and transport, auto and auto components, sugar projects etc,” she said.
“Rs 10,200 crore additional budget outlay will be provided towards Capital and industrial expenditure,” Anurag Thakur told.
“Rs 900 crores provided for COVID Suraksha Mission for research and development of the Indian COVID vaccine to the Department of Biotechnology.”
“The size of the stimulus being provided by the government, as part of the 12 announcements made today under Aatmanirbhar Bharat 3.0, amounts to Rs 2.65 lakh crores. 15% of national GDP as stimulus takeaway.”