Prime Minister Narendra Modi on May 12 announced a massive Rs 20 lakh crore package — almost 10 percent of India’s gross domestic product (GDP) — as the country battles the economic effects of the coronavirus pandemic.
This Rs 20 lakh crore figure, as the PM said in his speech on May 12, includes the previous Rs 1.7 lakh crore stimulus package announced by Finance Minister Nirmala Sitharaman, various government announcements for key sectors and steps taken by the Reserve Bank of India (RBI) since the lockdown began on March 24 midnight.
These earlier measures now together amount to Rs 7.79 lakh crore of the complete package.
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Here’s a look at the measures already announced:
RBI Governor Shaktikanta Das announced measures providing Rs 5.2 lakh crore liquidity:
> In the first round, on March 27, RBI announced liquidity measures worth Rs 3.74 lakh crore and a steep 75 bps rate cut, through various instruments.
> Rs 2.8 lakh crore of this has been completed.
> In the second round, on April 17, RBI announced further liquidity measures worth another Rs 1.5 lakh crore.
> A special liquidity facility of Rs 50,000 crore for mutual funds (MFs) was announced to ease liquidity pressure on the sector.
> Rs 1 lakh crore targeted long term repo operation (TLTRO), which infused Rs 25,000 crore into the system.
> Rs 50,000 crore via refinance scheme for non-banking finance companies (NBFCs).
Finance Minister Nirmala Sitharaman, on March 26, announced liquidity measures amounting to as much as Rs 1.7 lakh crore
>Pradhan Mantri Garib Kalyan Scheme worth Rs 1.7 lakh crore and direct cash transfer benefits to help the poor and migrant workers during the coronavirus pandemic.
> For doctors: Insurance cover worth Rs 50 lakh per person for doctors, paramedics, nurses and other health professionals.
> For poor: Up to 80 crore poor people to get an additional 5 kg of rice/wheat, over and above the existing 5 kg limit.
> For farmers: Transfer of first installment of Pradhan Mantri Kisan Yojana's annual Rs 6,000 assistance to beneficiaries immediately.
> For MGNREGA workers: Wage to go up by Rs 2,000 per worker.
> For poor widows, senior citizens and differently-abled: An ex-gratia amount of Rs 1,000 per month for the next three months.
> For beneficiaries of Ujjwala Scheme: Free gas cylinders to below poverty line families registered under the scheme for three months.
> For women having Jan Dhan Accounts: An ex-gratia amount of Rs 500 p.m for three months.
> For women in self-help groups: For seven crore households, the limit of collateral-free loans increased to Rs 20,00,000 from existing Rs 10,00,000.
> For organised sector workers: The government to pay EPF contribution of both employer and employees for three months. This will be applicable to firms with up to 100 employees, where 90 percent of employees earn less than Rs 15,000 per month.
> For organised sector employees: EPF scheme amended to allow non-refundable advance of 75 percent of the amount in credit of the account or three months' wages, whichever is lower.
> For construction workers: The government to utilise Rs 31,000-crore fund available in Building and other Construction Workers Fund to aid 3.5 crore construction workers during the coronavirus pandemic.
> For medical expenses: States to use district mineral fund for medical screening, facilities and health needs.
Today is the 50th day of India’s nationwide lockdown. Known COVID-19 cases in India stand at 74,281. The death toll due to the outbreak has reached 2,415.
The lockdown, which began from midnight of March 24 has since been extended twice – first to May 3 and then till May 17. Gradual easing began from April 20, with areas demarcated as Green, Orange and Red Zones based on number of cases and infection rate.
PM Modi on May 12 announced that the lockdown will be extended post May 17, details of which will be shared before May 18.
Finance Minister Nirmala Sitharaman is likely to announce contours of the complete Rs 20 lakh crore economic package at 4 pm today.
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