20 Lakh Crore Economic Package

20 Lakh Crore Economic Package: What will you get?

- CA Dhruv Anand

The mega Rs 20 lakh crore stimulus package announced on Tuesday by PM Modi includes previously announced measures to save the lockdown-battered economy, and focuses on tax breaks for small businesses as well as incentives for domestic manufacturing. The combined package works out to roughly 10 per cent of the GDP, making it among the most substantial in the world after the financial packages announced by the United States, which is 13 per cent of its GDP, and by Japan, which is over 21 percent of its GDP.

Union Finance Minister Nirmala Sitharaman on Sunday (May 17) provided a tranche-wise break up of the Rs 20 lakh crore economic package announced by Prime Minister Narendra Modi to boost the economy in view of the coronavirus crisis. Here is the summary of all the announcements so far, totaling over Rs 20 lakh crores: 

Earlier measures: Rs 1,92,000 crore
Tranche 1: Rs 5,94,550 crore
Tranche 2: Rs 3,10,000 crore
Tranche 3: Rs 1,50,000 crore
Tranche 4+5: Rs 48,100 crore

Total: 20,97,053 crore

Tranche 1: Rs 5,94,550 crore

• Emergency working capital facility for businesses: Rs 3 lakh crore
• Subordinate debt for stressed MSMEs: Rs 20,000 crore
• Fund of fund for MSMEs: Rs 50,000 crore
• EPF support for businesses and workers: Rs 2,800 crore
• Reduction in EPF rates: Rs 6,750 crore
• Special liquidity scheme for NBFCs, HFCs & MGIS: Rs 30,000 crore
• Partial credit guarantee scheme 2.0 for liabilities of NBFCs and MFIs: Rs 45,000 crore
• DISCOMS: Rs 90,000 crore
• reduction in TDS/TCS rates: Rs 50,000 crore

Tranche 2: Rs 3,10,000 crore

• Free food grain supply for migrant workers for 2 months: Rs 3,500 crore
• Interest subvention for MUDRA Shishu loans: Rs 1,500 crore
• Special credit facility for street vendors: Rs 5,000 crore
• Housing CLSS-MIG: Rs 70,000 crore
• Additional emergency WCF through NABARD: Rs 30,000 crore
• Additional credit through Kisan Credit Credit: Rs 2 lakh crore

Tranche 3: Rs 1,50,000 crore

• Micro food enterprises (MFEs): Rs 10,000 crore
• PM Matsya Sampada Yojana: Rs 20,000 crore
• TOP to TOTAL: Rs 500 crore
• Agri infra fund: Rs 1 lakh crore
• Animal husbandry infra development fund: Rs 15,000 crore
• Promotion of herbal cultivation: Rs 4,000 crore
• Beekeeping initiative: Rs 500 crore

Tranche 4+5: Rs 48,100 crore

• RBI measures: Rs 8,01,603 crore
• Revenue lost due to tax concessions announced since March 22: Rs 7,800 crore
• PM Garib Kalyan Package: Rs 1,70,000 crore

For any further queries, clarifications, and suggestions, please feel free to contact the undersigned author or write to us at proadvisors02@gmail.com.

CA Dhruv Anand

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Email - dhruvanand02@gmail.com