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Atmanirbhar Bharat Economic Package: Here’s the split-up of the Rs 20 lakh crore economic stimulus announced by India

The relief package announced by the government includes a host of measures such as free food grains for distraught migrant workers, hike in foreign direct investment in defence, liquidity measures for the MSMEs, changes in Essential Commodities Act, increase in public expenditure in health, among others.

In a series of announcements for the fiscal stimulus provided by the Government of India to battle the economic downturn induced by the coronavirus outbreak, Finance Minister Nirmala Sitharaman on May 18 declared the last tranche of the Rs 20 lakh crore Atmanirbhar Bharat Abhiyan economic package.

The relief package announced by the government includes a host of measures such as free food grains for distraught migrant workers, hike in foreign direct investment in defence, liquidity measures for the MSMEs, changes in Essential Commodities Act, increase in public expenditure in health, among others.

Here’s the split-up of the overall economic stimulus package:

Part 1

The first tranche of the economic relief package worth Rs 5.94 lakh crore provided liquidity measures to shore up small and medium business and support to shadow banks and electricity distribution companies. The definition of the MSME was changed and the threshold to qualify as MSMEs were raised. One of the significant announcement made by FM Sitharaman in the first tranche of economic stimulus package was Rs 3 lakh crore collateral-free automatic loans for businesses.

Sr no ItemsRs(Crores)
1Emergency W/C facility for Businesses, including MSMEs3,00,000
2Subordinate debt for stressed MSMEs20,000
3Fund of Funds for MSMEs50,000
4EPF support for Business and Workers2,800
5Reduction in EPF rates6,750
6Special liquidity scheme for NBFC/HFC/MFIs30,000
7Partial credit guarantee scheme 2.0 for liabilities of NBFCs/MFIs45,000
8Liquidity Injection for DISCOMs90,000
9Reduction in TDS/TCS rates50,000
Total5,94,550
Tranche 1 of the Economic Stimulus Package

Part 2

Totally Rs 3.1 lakh crore, the second tranche of the economic relief package included free food grains to the migrant workers across the country who have been amongst the worst-affected sections of the population from the economic tailspin caused by the coronavirus outbreak. A total of 9 announcements were made in the second tranche, which included free food grains to migrant workers for 2 months, national portability of ration cards, which permitted people to take ration from any public distribution unit in the country.

Sr no ItemsRs(Crores)
1Free Food grain supply to migrant workers for 2 months3,000
2Interest Subvention for Mudra Shishu loans1,500
3Special credit facility to street vendors5,000
4Housing CLSS-MIG70,000
5Additional Emergency Working Capital through NABARD30,000
6Additional Credit through KCC2,00,000
Total3,10,000
Tranche 2 of the Economic Stimulus Package

Part 3

The third tranche of the economic stimulus package saw the finance minister Nirmala Sitharaman allocating money for the Agricultural, Animal Husbandry and the ancillary sectors. A whopping Rs 1,00,000 crore was earmarked for bolstering the agricultural infrastructure in the country under Agri Infrastructure Fund. The government also declared that the Essential Commodities Act will be amended to deregulate prices of cereals, edible oils, oilseeds, pulses, onions, potatoes etc. Stock limit imposed on processors or value chain participants or any exporter subject to export demand was also removed by the government.

Sr no ItemsRs(Crores)
1Food Micro Enterprises10,000
2Pradhan Mantri Matsya Sampada Yojana20,000
3TOP to Total: Operation Greens500
4Agri Infrastructure Fund1,00,000
5Animal Husbandry Infranstructure Development Fund15,000
6Promotion of Herbal Cultivation4,000
7Beekeeping Initiative500
Total1,50,000
Tranche 3 of the Economic Stimulus Package

Part 4 and 5

The fourth and fifth tranche of the investment largely dealt with bringing about structural reforms. About Rs 40,000 crore allocation was added to the Mahatma Gandhi Rural Employment Guarantee Act(MGNREGA) and about Rs 8,100 crore for Viability. Gap Funding.

Sr no ItemsRs(Crores)
1Viability Gap Funding 8,100
2Additional MGNREGS allocation40,000
Total48,100
Tranche 4 and 5 of the Economic Stimulus Package

Overall stimulus by Atmanirbhar Bharat Package

While the five tranches of stimulus package announced by the government totalled Rs 11,02,650 lakh crore, the relief measures declared by the government including the earlier scheme of Pradhan Mantri Garib Kalyan Package(PMGKP) worth Rs 1,92,800 crore and the measures announced by the RBI to tackle the economic downturn as the country staggers under the economic shadow of the coronavirus lockdown. The RBI package which is pegged at Rs 8,01,603 crore includes measures like moratorium on loan repayments for all borrowers and interest rate cuts etc.

Sr no ItemsRs(Crores)
1Part 15,94,550
2Part 23,10,000
3Part 31,50,000
4Part 4 and 548,100
Sub-Total11,02,650
5Earlier Measures including PMGKP1,92,800
6RBI Measures(Actual)8,01,603
Sub-Total9,94,403
Grand Total20,97,053
Overall stimulus provided by Atmanirbhar Bharat Package

The Finance Minister said that the last tranche will focus on 7 sectors- MGNREGS, Health (rural and urban) and Education related, businesses and coronavirus, decriminalisation of Companies Act, Ease of Doing Business, Public Sector Enterprises- related steps and state governments and related resources.

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OpIndia Staff
OpIndia Staffhttps://www.opindia.com
Staff reporter at OpIndia

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