A day after Prime Minister Narendra Modi announced Rs 20 lakh crore fiscal stimulus-- 10 per cent of India's GDP-- to deal with COVID-19 situation in the country, Union Finance Minister Nirmala Sitharaman has addressed a press conference in New Delhi to highlight further on the Prime Minister’s declaration. As per PM Modi and FinMin, the special package will play a key role in the 'Atmanirbhar Bharat Abhiyan’ launched by the Government. These announcements made by the government over COVID, decisions of RBI and today's package totals to Rs 20 lakh crore is aimed at poor, farmers and taxpayers of the country. This relief package will spur growth of a very self-reliant India which is why this initiative is called ‘Atmnirbhar Bharat Abhiyaan. Built on the five pillars of economy, infrastructure, system, demography and demand’, the declared package for ‘Atmanirbhar Bharat’ is also second largest in Asia after Japan.
Built on the five pillars of economy, infrastructure, system, demography and demand’, the declared relief package will spur growth of a very self-reliant India which is why this initiative is called ‘Atmnirbhar Bharat Abhiyaan.
Some of the major highlights from Finance Minister Nirmala Sitharaman’s speech are:
- The Government has promised Rs 20,000 crores’ subordinate debt for stressed MSMEs. Our government will provide support of 4,000 to CGTMSE
- A collateral-free MSME loan is being offered; this will give a facility of 3 lakh crore. These have a 4-year tenor and will be valid up to October 31, 2020
- Collateral free loan to be provided to SMEs with 12-month moratorium; 45 lakh units to benefit
- To ease the financial stress on businesses, once the operations resume, the government has decided to continue EPF support for business and workers for 3 more months providing a liquidity relief of Rs 2,500 crores
- A refund of Rs 18,000 cr is given to taxpayers, this will benefit 14 lakh taxpayers from clearing of refund dues
- For more funds at the disposal of the taxpayers, the rates of Tax Deduction at Source (TDS) for non-salaried specified payments made to residents and rates of Tax Collection at Source (TCS) for the specified receipts to be reduced by 25 per cent of the existing rates
- The Government will also launch Rs 30,000 crore Special Liquidity Scheme for both primary and secondary market transactions in investments graded debt paper of NBFCs, HCFCs and MFIs
- Rs 45,000 crore liquidity to be infused in NBFCs through partial credit guarantee scheme
- The investment limit for MSME to be revised revised upward; turnover based criteria being introduced
- Also, the due date for all ITR filing has been extended till November 30th