On Tuesday, Prime Minister Narendra Modi addressed the nation for the fifth time amid coronavirus and announced a special stimulus package. He gave an encouraging call for ‘Aatmanirbhar Bharat’ as the country battles the economic effects of the coronavirus pandemic. The package includes the earlier announcements by the government amid crisis and decisions taken by the RBI. The stimulus package is to the tune of Rs 20 lakh crore which is equal to almost 10% of India’s GDP.

In the first tranche, Finance Minister Nirmala Sitharaman made a series of the announcement to ease the pressure on various sectors.

  • Rs 3 lakh crore Collateral free Automatic Loans for Business, including MSME.
  • Rs 20,000 crore as subordinate debt. for stressed MSME’s.
  • Rs 50,000 crore equity infusion for MSME’s through Fund of Funds; to be operated through a mother fund and few daughter funds: this will help to expand MSME size as well as capacity.
  • Sanctioned Rs 15,000 crores for Emergency Health Response Package.
  • Refunds of Rs 18,000 crore made to income tax assesses, 40 lakh taxpayers benefitted.
  • Relief Package worth Rs 1.7 lakh crore under PMGKY to help the poor fight the coronavirus.
  • The multi-faceted yojana has provided insurance cover of Rs 50 lakh to every health worker.
  •  The company with an investment of Rs 1 crore and a turnover of Rs 5 crore is stated as a micro-enterprise under the new definition. One with Rs 10 crore investment and turnover of Rs 50 crore is stated as a small enterprise. One with Rs 20 crore investment and Rs 100 crore turnover is stated as a medium enterprise.
  • Global tenders to be disallowed in Government procurement up to Rs 200 crores.
  • EPF support for Business and Workers for 3 more moths providing a liquidity relief of Rs 2,500 crore.
  • Government support in the form of 12% employer and 10% employee contribution extended for another three months: June, July and August- Rs 6750 crore liquidity support.
  • Rs 30,000 crore Special Liquidity Scheme for NBFC’s/HFC’s/MFI’s.
  • Rs 45,000 crore liquidity infusion through a Partial Credit Guarantee Scheme 2.0 for NBFC’s.
  • Rs 90,000 Crore Liquidity Injection for DISCOMs.
  • 6 Month extension to government contractors.
  • Rs 50,000 crore liquidity infusion by reducing rates of TDS, for non-salaried specified payments made to residents and rates of Tax Collection at Source for specified receipts, by 25% of the existing rates.
  • Due date of all income tax return for FY 2019-20 will be extended from 31st July 2020 and 31st October 2020 to 30th November 2020 and Tax audit from 30th September 2020 to 31st October 2020.
  • Period of Vivad Se Vishwas Scheme for payment without additional amount extended to 31 December 2020.