Unbiased Analysis of ₹ 20 lakh crore economic stimulus package by Prime Minister Narendra Modi and Finance Minister Nirmala Sitharaman. Why stock markets reacted negatively after such major announcements?
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This economic relief package was package was announced by PM Modi on 12 May 2020 keeping in mind situation of recession in India in 2020. We can all this a corona relief package or covid 19 relief package also as it is mainly to deal with the current economic situation due to increasing number of cases in coronavirus in India and the lockdown imposed by government. There is a big threat of global recession in 2020. All major economies of the world are trying hard to avoid an economic crash. So, India has also taken few steps.
Further to Prime Minister’s speech, Finance Minister Nirmala Sitharaman held press conferences from 13 May 2020 to 17 May 2020 and announced various schemes, measures and reforms in the corona economic relief package.
In this video, We will see a detailed breakdown of the figure of ₹ 20 lakh crore package and where the amount is allocated. How much is the Fiscal Stimulus and how much is the Liquidity Stimulus.
Broadly, the breakdown of the ₹ 20 lakh crore economic stimulus package is as follows:
RBI Measures – ₹ 801,603 Cr
Earlier Measures – ₹ 1,92,800 Cr
PART 1 – ₹ 5,94,550 Cr
PART 2 – ₹ 3,10,000 Cr
PART 3 – ₹ 1,50,000 Cr
PART 4 & 5 – ₹ 48,100 Cr
Further breakdown of Earlier Measure and various parts:
Earlier Measures
1. Revenue Lost due to Tax Concessions since 22 Mar 2020 – ₹ 7,800 Cr
2. PM’s Announcement for Healthcare – ₹ 15,000 Cr
3. PM Garib Kalyan Package – ₹ 1,70,000 Cr
PART 1
1. Emergency Working Capital for MSMEs – ₹ 3,00,000 Cr
2. Sub-ordinate Debt for Stressed MSMEs – ₹ 20,000 Cr
3. Fund of Fund for Growth MSMEs – ₹ 50,000 Cr
4. EPF Support (Business & Workers) – 2,800 Cr
5. Reduction in EPF Rates – ₹ 6,750 Cr
6. SLF for NBFC/ HFC/ MFIs – 30,000 Cr
7. Partial Credit Guarantee Scheme for Liabilities of NBFCs/ MFIs – ₹ 45,000 Cr
8. Liquidity Injection for DISCOMs – ₹ 90,000 Cr
9. Reduction in TDS/ TCS Rates – ₹ 50,000 Cr
PART 2
1. Free Foods Grains to Migrants – ₹ 3,500 Cr
2. Interest Subvention for MUDRA Shishu Loans – ₹ 1,500 Cr
3. Special Credit Facility for Street Vendors – ₹ 5,000 Cr
4. Housing CLSS – MIG – ₹ 70,000 Cr
5. Additional Emergency WC through NABARD – ₹ 30,000 Cr
6. Additional Credit through Kisan Credit Card – ₹ 2,00,000 Cr
PART 3
1. Micro Food Enterprises – ₹ 10,000 Cr
2. PM Matsya Sampada Yojana – ₹ 20,000 Cr
3. TOP To Total : Operation Greens – ₹ 500 Cr
4. Agri Infrastructure Fund – ₹ 1,00,000 Cr
5. Animal Husbandry Infra Fund – ₹ 15,000 Cr
6. Promotion of Herbal Cultivation – ₹ 4,000 Cr
7. Beekeeping Initiatives – ₹ 500 Cr
PART 4 & 5
1. Viability Gap Funding (Social Infrastructure) – ₹ 8,100 Cr
2. Additional MGNREGS allocation – ₹ 40,000 Cr
Hope you liked this unbiased analysis on ₹ 20 Lakh Crore Package by PM Modi & FM Nirmala Sitharaman.
