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Business News/ News / India/  Nirmala Sitharaman’s economic package finale: All key announcements
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Nirmala Sitharaman’s economic package finale: All key announcements

Today’s announcements by Nirmala Sitharaman was the last leg of the ₹20 lakh crore economic package announced by PM Narendra Modi

Finance Minister Nirmala Sitharaman releasing the last tranche of the five-part economic package at a press conference in New Delhi today. (Pradeep Gaur/Mint)Premium
Finance Minister Nirmala Sitharaman releasing the last tranche of the five-part economic package at a press conference in New Delhi today. (Pradeep Gaur/Mint)

NEW DELHI : With a combination of several reforms, fiscal and liquidity measures, finance minister Nirmala Sitharaman today completed the announcement of the last leg of the 20 lakh crore economic package announced by Prime Minister Narendra Modi earlier. To improve livelihood for the poor, the Modi government today hiked the MGNREGA budget hiked by an additional 40,000 crore. Sitharaman also announced that public sector enterprises or PSUs will exit non-strategic areas and private companies will be allowed to enter all sectors.

The finance minister also detailed the break-up of the 20 lakh crore package which includes liquidity measures of 8 lakh crore announced b the RBI earlier as well as the PM Gareeb Kalyan Yojna.

Nirmala Sitharaman Press Conference Highlights:

-Whatever you do will be little under the given circumstances: FM on economic package.

-FM on economic package: We have taken suggestions from everywhere and done what we think is the best.

-"I want to tell the Opposition party that on the issue to migrants we all must work together. We are working with all states on this issue. With folded hands, I ask Sonia Gandhi ji that we must speak & deal with our migrants more responsibly": FM Sitharaman

-"We want uninterrupted supply of power": FM

-Sitharaman takes a jibe at Rahul Gandhi's roadside chat with migrant labourers saying, "Is this not drama?"

-Let all Congress-ruled state governments get more trains to bring more migrant labourers: FM

-All states are trying to co-operate: FM on movement of migrants through trains

-The definition of "covid-related debt" will be announced soon in a notification: FM

-I have not announced anything on bank mergers, clarifies Sitharaman

-RBI measures of 801,603 included in 20 lakh crore economic package

-Total stimulus package is worth 20,97,053 crore

-Fourth and fifth tranche is worth 48,100 crore

-Stimulus measures announced in third part: 1.5 lakh crore

-Second tranche was worth 310,000 crore

-Economic package tranche 1 was worth 594,500 crore

-Stimulus measures from earlier announcements was worth 192,800 crore: Sitharaman

-Revenue loss due to tax concession: 7,800 crore

-This will give states extra resources of 4.28 lakh crore: FM

-Centre has decided to accede to the request and increased borrowing limits of states from 3% to 5% for 2020-21.

-States have so far borrowed only 14% of the limit authorised but 86% of the authorised borrowing remains unutilised.

-Revenue deficit grants to states worth 12,390 crore given on time in April and May, despite Centre's stressed resources.

-Devolution of taxes worth 46,038 crore in April was given fully as if Budget estimates were valid, even though actual revenue shows unprecedented decline from Budget estimates.

-Number of PSUs in strategic sectors will be maximum four. Others will be privatised or merged.

-In certain sectors, PSUs will be privatised.

-New policy to broadly categorise strategic sectors

-Public sector enterprise policy: All sectors will be open to private sectors also while PSUs will play an important role in defined areas.

-Lower penalties for all defaults for small companies, one-person companies, producer companies and start-ups.

-Companies listing only NCDs on stock exchange will not be regarded as listed companies.

-Direct listing of securities in foreign jurisdictions permitted: FM

-The amendments in Companies Act will de-clog criminal courts and NCLT.

-Decriminalisation of Companies Act violations involving minor technical and procedural defaults, majority of compoundable offences sections to be shifted to internal adjudication mechanism: FM

-Minimum threshold to initiate insolvency proceedings raised to 1 crore from 1 lakh. This will largely insulate MSMEs.

-No fresh insolvency proceedings upto 1 year: FM

-Debts related to Covid shall be excluded from IBC: Sitharaman

-Top 100 universities will be permitted to automatically start online courses by May 30 this year.

-Education: Extensive use of radio, community radio and podcasts

-One TV channel will be earmarked for every class from 1 to 12.

-Sitharaman will give the break-up of the 20 lakh crore economic package shortly.

-Health and wellness centres in urban and rural areas will be increased: FM

-Public health expenditure will be increased: FM

-Govt to allocate additional 40,000 crore for MGNREGA to provide employment boost. It will help generate 300 crore person days in total.

-Online education during Covid: Provision for live telecast of interactive channels with experts through Skype.

-The central govt has already announced 15,000 crore healthcare funds. to fight Covid-19.

-7 steps to be announced today -- MGNREGA, health (rural and urban), education, business and Covid, decriminalisation of Companies Act, ease of doing business, public sector enterprises and state governments' resources.

-Our attempts is to make sure that the environment is alright for everyone to ensure their business is alright.

-Sitharaman turns focus to livelihoods.

-12 lakh EPFO subscribers withdrew 6,060 crore under the Covid pandemic withdrawal.

-Jan Dhan account: 20 crore women got more than 10,000 crores.

- PM Gareeb Kalyan Package Yojna: Direct benefit transfer has reached 8.9 crore farmers. Amount disbursed 16,394 crores.

-FM recalls PM Gareeb Kalyan Package Yojna

-Sitharaman's press conference begins. She will announce the last tranche of the economic package.

-Stock markets are expecting relief on long term capital gains tax (LTCG).

-CII Director General Chandrajit Banerjee said the announcements were focused on investment promotion in a big way in key sectors of the economy. He said the announcements give shape to the Prime Minister's vision of Atma Nirbhar Bharat for localised manufacturing, reducing imports and boosting employment.

-Ficci President Sangita Reddy said the government is turning the coronavirus-induced crisis into an opportunity for India.

-The Modi government has split the 20 lakh crore economic package, which also includes previous measures taken by the finance ministry and the RBI, into five tranches.

-Former finance minister and Congress leader P Chidambaram has criticised the announcements so far claiming that there were no fiscal measures in the fourth tranche.

-The finance minister had announced some big-bang reforms yesterday related to coal, mining and defence manufacturing.

-Nirmala Sitharaman's presser begins at 11 am.

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Published: 17 May 2020, 10:47 AM IST
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