Relief package of Rs.1.7 lakh Crore announced by the Finance Minister to fight Coronavirus
Our central government has taken many initiatives to fight the pandemic named COVID-19. On 26th March 2020, our finance minister Mrs. Nirmala Sitharaman made a big announcement and offered a fiscal package of 1.7 Lakh Crore under PM Garib Kalyan Scheme to help and support poor, workers and the needy persons. There are many announcements made by our Finance minister including cash transfers and food security in order to support various sections of the society in this crucial time.
Benefits to Medical Staff
- Medical insurance cover of Rs.50 lakh per person for doctors, nurses, sanitation workers, paramedical staff etc.
- This insurance scheme will provide benefits to 20 Lakh health services & ancillary workers.
Food Related Benefits
- 80 Crore poor people will get benefit under PM Garib Kalyan Anna Yojana.
- Every poor person will get 5 Kg of rice & wheat absolutely free (additional to current 5kg allocation) for the next 3 months.
- Central government will also provide 1 Kg of preferred pulse absolutely free to every household for the next 3 months.
- It can be easily availed in 2 instalments.
Direct Transfer Benefits
Central government specifically targeted the various sections of the society under direct transfer benefits to help them survive in this critical situation of COVID-19. It includes farmers/MNREGA, Jan Dhan Yojna, Ujjwala Scheme, Widows/Pensioners, Self-help women groups, organized sector workers (EPFO)/Construction workers. Direct transfer benefits provided by central government are as follows -
- Increase in daily wages of workers from Rs.182 to Rs.202 under MNREGA. It will benefit 5 Crore families and additionally Rs.200 will be provided to each worker under this scheme.
- Instalment of Rs.2000 will be transferred to farmers in the first week of April which will benefit 8.69 Crore farmers.
- Every woman holding woman jhan dhan account will be provided Rs.500 as a direct transfer benefit to take care of their households for next 3 months.
- Pension of Rs.1000 to 3 Crore poor senior citizens, widows & disabled persons for next 3 months.
- Worker’s welfare fund of Rs.31000 Crore allocated to construction workers. They are planning to allow state government to assist 3.5 Crore construction workers in its utilization.
- Government will pay EPF to both employer & employee for the next 3 months under PM Garib kalyan scheme. It is eligible for establishments having up to 100 employees where 90% of the employees are earning less than Rs.15000. 80 lakh workers to get benefit under this scheme.
- Free cylinders to women under Ujwala scheme for the next 3 months which will benefit 8.3 Crore BPL families.
- Collateral loans will be doubled to Rs. 20 Lakh for women in self-help groups under National rural livelihood mission scheme. 7 Crore households will get benefit under this scheme.
- Regulations related to PF scheme to be amended - Allowing non-refundable advance of 75% of the amount in account or wages of 3 months (whichever is lower). It will benefit around 48 Crore workers.
- Funding to medical testing & screening with the help of district mineral welfare fund.
RBI’s announcement to fight with the impact of Coronavirus
On 27th March 2020, RBI governor Shaktikanta das has made an announcement and taken certain steps from rate cuts to liquidity measures to safeguard our economy from the impact of Coronavirus –
- Reduction of 1% in the cash reserve ratio (CRR) from 4% to 3%. This will result in the release of Rs.1.37 lakh Crore into the banks.
- Historic deduction on the Repo rate by 0.75%. Previously, it was 5.15% but now it is reduced to 4.40%. This will make all types of loans cheaper than before.
- Deduction in the reverse repo rate from 4.9% to 3.75%.
- Increase in margin facility cap from 2% to 3%.
- RBI advised Bank & NBFC’s to offer moratorium to bank customers on all term loans for 3 months.
- Net funding ratio rule will be delayed by 6 months.
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