The Union Finance Ministry on Sunday announced the fifth and the final tranche of the Rs 20 lakh crore Atmanirbhar Bharat stimulus package.
Union Finance Minister Nirmala Sitharaman. (Photo: PTI)
The Union Finance Ministry on Sunday announced the fifth and the final tranche of the Rs 20 lakh crore Atmanirbhar Bharat stimulus package. The final tranche mainly allocated an additional Rs 40,000 crore to the Mahatma Gandhi National Rural Employment (MGNREGA) budget estimate to ensure that migrants do not face unemployed amid the nationwide lockdown, and a viability gap funding of more than Rs 8,000 crore.
Finance Minster Nirmala Sitharaman also announced a new public sector policy that allows the involvement of private companies in all sectors. In addition to this, new reforms health sector, including setting up of infectious diseases hospital blocks in all districts, reforms in online education, decriminalisation of Companies Act defaults, enhancement of ease of doing business through IBC-related measures was also announced.
The finance minister also announced that Centre has increased the borrowing limits of states from 3 per cent to 5 per cent for 2020-21, giving the states an extra resource of Rs 4.28 lakh crore.
The first tranche of the economic package focused extensively on supporting MSMEs that have been worst hit by the lockdown to contain the spread of coronavirus in the country. The second tranche focused on measures for economic revival focuses on migrant workers, small farmers, tribals and street vendors. The agriculture sector was the focal point of the third tranche, while the fourth one, announced on Saturday, consisted of a set of reforms for the coal, minerals, defence production, civil aviation, power distribution, space and atomic energy sectors.
Here’s a break-up of the five tranches of the Atmanirbhar Bharat package:
Stimulus provided by announcement in tranche 1 of economic package
| S.no | ITEM | Rs in crore |
| 1 | Emergency W/C Facility for Businesses, incl MSMEs | 3,00,000 |
| 2 | Subordinate Debt for Stressed MSMEs | 20,000 |
| 3 | Fund for Funds for MSMEs | 50,000 |
| 4 | EPF Support for Business & Workers | 2,800 |
| 5 | Reduction in EPF rates | 6,750 |
| 6 | Special liquidity Scheme for NBFC/HFC/MFIs | 30,000 |
| 7 | Partial Credit Guarantee Scheme for 2.0 for Liabilities of NBFCs/MFIs | 45,000 |
| 8 | Liquidity Injection for DISCOMs | 90,000 |
| 9 | Reduction in TDS/TCS rates | 50,000 |
| TOTAL | 5,94,550 |
Stimulus provided by announcement in tranche 2 of economic package
| S. no | ITEM | Rs in crore |
| 1 | Free Food Grain Supply to Migrant Workers for 2 Months | 3,500 |
| 2 | Interest Subvention of Mudra Shishu Loans | 1,500 |
| 3 | Special Credit Facility to Street Vendors | 5,000 |
| 4 | Housing CLSS-MIG | 70,000 |
| 5 | Additional Emergency Working Capital through NABARD | 30,000 |
| 6 | Additional Credit Through KCC | 2,00,000 |
| TOTAL | 3,10,000 |
Stimulus provided by announcement in tranche 3 of economic package
| S. no | ITEM | Rs in crore |
| 1 | Food Micro Enterprises | 10,000 |
| 2 | Pradhan Mantri Matsya Sampada Yojana | 20,000 |
| 3 | TOP to TOTAL: Operation Greens | 500 |
| 4 | Agri Infrastructure Fund | 1,00,000 |
| 5 | Animal Husbandry Infrastructure Development Fund | 15,000 |
| 6 | Promotion of Herbal Cultivation | 4,000 |
| 7 | Beekeeping Initiative | 500 |
| TOTAL | 1,50,000 |
Stimulus provided by announcement in tranche 4 and 5 of economic package
| S. no | ITEM | Rs in crore |
| 1 | Viability Gap Funding | 8,100 |
| 2 | Additional MGNREGA Allocation | 40,000 |
| TOTAL | 48,100 |
Overall stimulus provided by Atmanirbhar Bharat package
| S.no | ITEM | Rs in crore |
| 1 | Part 1 | 5,94,550 |
| 2 | Part 2 | 3,10,000 |
| 3 | Part 3 | 1,50,000 |
| 4 | Part 4 and 5 | 48,100 |
| Sub-Total | 11,02,650 | |
| 5 | Earlier Measures including PMGKP | 1,92,800 |
| 6 | RBI Measures (Actual) | 8,01,603 |
| Sub-Total | 9,94,403 | |
| GRAND TOTAL | 20,97,053 |
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