Rs 20 lakh crore project: All that the FinMin said at the briefing
New Delhi, May 13: Union Finance Minister Nirmala Sitharaman unveiled details of the Rs 20 lakh crore economic package announced by Prime Minister Narendra Modi.
She said that essentially this is to spur growth to build a very self-reliant India and that's why this initiative is called 'Atmnirbhar Bharat Abhiyaan.'
Highlights of the full briefing:
- Aatma NIrbhar Bharat rests on five pillars: Economy, Infrastructure, Technology-driven systems, Demography, and Demand.
- Prime Minister Modi laid out a comprehensive vision, and that vision was laid out after wide consultations with several sections of the society
- You've been seeing that the government led by Prime Minister Modi since 2014 has been a listening, sensitive and responding government.
- A self-reliant India does not mean that our country will be an isolationist country. It will be a confident country.
- So far, Rs 52,606 crore has been transferred to 41 crore Jan Dhan account holders, Rs 18,000 crore grain transfers; Ujjwala, divyang and old age have also benefited.
- Beginning today, over the next few days we will come before you with our team to put forth Prime Minister's vision of self-reliant India.
- We should not forget that we also have a responsibility towards the poor, needy, the migrants workers, divyang and the aged of the country.
- There is a collateral-free MSME loan that is being provided. This will give a facility of 3 lakh crore.
- Collateral free automatic loans to be provided to MSMEs worth Rs 3 Lakh Crore. These have a 4-year tenor and will be valid up to October 31, 2020.
- Rs 20,000 crores subordinate debt for stressed MSME. Two lakh MSME's are likely to benefit from it. Our government will provide support of 4,000 to CGTMSE.
- Global tenders to be disallowed in Government procurement up to Rs 200 crores. Indian MSMEs and other companies have often faced unfair competition from foreign companies, this will make self-reliant India, will also then be able to serve 'Make in India'.
- To ease financial stress as businesses get back to work, Our government has decided to continue EPF support for business and workers for 3 more months providing a liquidity relief of Rs 2,500 crores.
- Government will also launch a Rs 30,000 crore Special Liquidity Scheme. Under this scheme investment will be made in both primary and secondary market transactions in investments graded debt paper of NBFCs, HCFCs and MFIs.
- Discoms today are facing unprecedented cash flow problems. In all states, they are in serious crisis. In order to help them, liquidity infusion of Rs 90,000 will be done.
- Extension of up to 6 months to be provided to contractors by all central agencies.
- In order to provide more funds at the disposal of the taxpayers, the rates of Tax Deduction at Source (TDS) for non-salaried specified payments made to residents and rates of Tax Collection at Source (TCS) for the specified receipts shall be reduced by 25 per cent of the existing rates.
- Payment for contract, professional fees, interest, rent, dividend, commission, brokerage, etc. shall be eligible for this reduced rate of TDS. This reduction shall be applicable for the remaining part of the FY 2020-21 i.e. from tomorrow to 31st March, 2021. This measure will release Liquidity of Rs. 50,000 crore.
- Due date of all income-tax return for the financial year 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 making payment without additional amount will be extended to 31st December, 2020.