The fifth and last tranche of Rs 20 lakh crore stimulas package was announced by Union Finance Minister Nirmala Sitharaman, today at 11:00 AM.
The key take aways from todays announcements are as under:
7 steps are part of last tranche.
1. MNREGA : Budget provision enhanced from Rs 61,000 cr to Rs 1,01,000 Cr. Additional Rs 40,000 cr given over BE for the migrant labour who are going back to their home town who can also enrol in MNREGA.
2. Wrapping up of health infrastructure:
Thrust on Health Reforms and thus expenditure on health to be hiked.
All district hospitals be upgraded for handling infectious desease.
Wellness centres to strengthened.
All districts, public health labs be set up at all block levels.
Encouragement of research in health sector.
3. Education :
PM e-vidya programme for school children to start soon, Diksha- One nation one digital platform facility.
One earmarked channel for each class. One Class on Channel.
Extensive use of radio.
Special content for visually and impaired children.
Top 100 universities to start online courses.Mano darpan
4. Insolvency and Bankrupcy Code related matters
Debts related to COVID, excluded from default.
No fresh insolvency proceedings will be initiated upto one year.
For MSMEs special insolvency framework will be notified u/s 240A
Minimum threshold limit for insolvency proceeding will be hiked to Rs 1 cr from Rs 1 lakh. Will insulate MSMEs from IBC. Ordinance to be brought in.
5. Companies Act and related compliance
Compliance deadlines already extended.
Decriminalise the technical and small offences
Compoundable offences in Companies Act, 2013 (7 dropped +5 transferred to internal adjudication).
Internal adjudication route offences hiked from 18 to 58. Help in declogging of Courts. Amendment by ordinance.
Companies to directly list their securiries in forighn jurisdiction.
Listing of NCD in FE will not be regarded as listed Companies.
7. Public Sector Enterprise Policy
All sectors to be open for private sector.
PSU will continue play important role in defined sectors.
New policy to define strategic sector and other sectors considering public interest.In strategic sector at least one PSU will be present. Other Sectors to be privatised.
In notified strategic sector notified not more than 4 PSUs shall remain, however at least one PSU will be there. If more than 4 PSUs are there they will be merged / privatised. No mushrooming of PSUs. Private Sector will also be there.
Detailed policy will soon be issued.
7. Supporting State Government
Sharp decline in revenues. Extended support to State Government. Tax revenue Rs 46,038 cr given to States till April, 2020.
Revenue deficit grants to State Govt of Rs 12,390 Cr given on time.
State Disaster relief fund Rs 11,092 cr also released, Health Ministry also released separate amount.
Overdraft facility norms to State Govt relaxed by RBI due to intervention by Central Govt.
State has borrowing ceiling upto 3% of their GDP. State only borrowed 14% of the total limit authorised. Despite this borrowing limit increased to 5% of GDP. Addl Rs 4.28 lakh crore to States.
Increase in borrowing upto 3.50% not connected with any conditions. However above 3.50% to 4.50% will be released in 4 tranches subject to fulfillment of conditions/ reforms by State. The last 0.50% will be released upon fulfillment of 3 of 4 milestones are achieved.
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