Finance Minister Nirmala Sitharaman has announced the final tranche of the stimulus economic package on Sunday. The announcement comes with a number of measures, which are mainly structural in nature, & aimed to create a conducive environment for businesses via ‘ease of doing business’.
The economic measures of the 5th tranche includes an additional Rs 40,000 crore for the rural jobs guarantee programme, a year-long waiver in fresh insolvency filings, relaxation in compoundable offences under Companies Act & additional funds allocated to the states for healthcare and containment efforts.
Highlights of Sitharaman’s announcements of the fifth & final tranche of the Rs 20 lakh crore economic package:
For providing employment boost, additional Rs 40,000 crore allocations for MGNREGS are done.
There will be increase in public expenditure on health.
Ramp up health centres in rural & urban areas for any future pandemics.
Suspension of fresh initiation of insolvency proceedings up to 1 year
Threshold to initiate insolvency proceedings raised to Rs 1 crore from Rs 1 lakh
Decriminalisation of Companies Act violations involving minor technical defaults
At least one enterprise in strategic sectors but private sector to be allowed
Govt opens all sectors to private companies, while public sector enterprises to play role in defined areas
Most of compoundable offences sections to be shifted to internal adjudication mechanism
Allowed direct listing of securities by Indian firms in permissible foreign markets
PSEs to be privatized in non-strategic areas; timing to be based on feasibility etc
State borrowing limit raised to 5% from 3% for FY'21; to unleash Rs 4.28 lakh crore
Total stimulus package stands at Rs 20,97,053 crore, including RBI's liquidity measures of Rs 8,01,603 crore since February 2020
Announced Rs 1,92,800 crore schemes including Rs 1.70 lakh crore PM Garib Kalayan Yojana (PMGKY) in March
Part of the enhanced state borrowing to be linked to specific reforms
Source: Zee Business
