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01 -Saima Pawne
Report on Government
of India’s 20 Lakh
Crore stimulus
package
Covid-19 Stimulus package 2020
India has announced a sizeable economic stimulus package (USD 280 Billion or
INR 20 lakh crore, 10% of GDP). The intention seems to be to show that the
Government cares about the economy. Moreover, it is willing to match global
stimulus programs. Hon’ble Prime Minister, Mr. Narendra Modi announced the
special economic package on May 12, 2020. Following which, the Finance
Minister,Ms. Nirmala Sitharaman, made daily detailed press conferences for
fivedays. The package aims to promote self-reliance in India (“Atma-Nirbhar
Bharat Abhiyan”) Further, it aims to reduce
the financial strain on the country due to the pandemic. The package of Rs 20
lakh crore has been divided between measures that the government is taking now
and the measures that it has taken earlier. Here’s the break-up of ₹20 lakh crore
stimulus package:
03
Items : Rs (crores)
Part1 : 594,550
Part 2 : 310,000
Part 3 : 150,000
Part 4&5 : 48,100
Earlier measures : 801,603
Global Total : 20,97,50
04
Tranche 1: ₹5,94,550 crore
· The five-part stimulus package announced beginning May 13 comprised ₹5.94 lakh crore in
the first tranche that provided credit line to small businesses and support to shadow banks and
electricity distribution companies.
· Emergency working capital facility for businesses including MSMEs: ₹3 lakh crore
· Subordinate debt for stressed MSMEs: ₹20,000 crore
· Fund of fund for MSMEs: ₹50,000 crore
· EPF support for businesses and workers: ₹2,800 crore
· Reduction in EPF rates: ₹6,750 crore
· Special liquidity scheme for NBFCs, HFCs and MGIS: ₹30,000 crore
· Partial credit guarantee scheme 2.0 for liabilities of NBFCs and MFIs: ₹45,000 crore
· DISCOMS: ₹90,000 crore reduction in TDS/TCS rates: ₹50,000 crore
05
Tranche 2: ₹3,10,000 crore
· The second tranche included free food grain to stranded migrant workers for two
months and credit to farmers, totaling ₹3.10 lakh crore.
· Free food grain supply for migrant workers for 2 months: ₹3,500 crore
· Interest subvention for MUDRA Shishu loans: ₹1,500 crore
· Special credit facility for street vendors: ₹5,000 crore
· Housing CLSS-MIG: ₹70,000 crore
· Additional emergency WCF through NABARD: ₹30,000 crore
· Additional credit through KCC: ₹2 lakh crore
Tranche 3: ₹1,50,000 crore
· Stimulus under Part-3 which included incentives for Food Micro Enterprises, totaling 1.5 lakh
crore.
· MFEs: ₹10,000 crore
· PM Matsya Sampada Yojana: ₹20,000 crore
· TOP to TOTAL: ₹500 crore
· Agri infra fund: ₹1 lakh crore
· Animal husbandry infra development fund: ₹15,000 crore
· Promotion of herbal cultivation: ₹4,000 crore
· Beekeeping initiative: ₹500 crore
Tranche 4+5: ₹48,100 crore
· The fourth and fifth tranches that dealt mostly with structural reforms totaled to
₹48,100 crore.
· Viability gap funding: ₹8,100 crore
· Additional MGNREGS: ₹40,000 crore
This COVID relief package puts bold reforms to make India
self-reliant so that any other crisis that may emerge in the future could be
efficiently tackled.

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Report on government of india

  • 1. 01 -Saima Pawne Report on Government of India’s 20 Lakh Crore stimulus package
  • 2. Covid-19 Stimulus package 2020 India has announced a sizeable economic stimulus package (USD 280 Billion or INR 20 lakh crore, 10% of GDP). The intention seems to be to show that the Government cares about the economy. Moreover, it is willing to match global stimulus programs. Hon’ble Prime Minister, Mr. Narendra Modi announced the special economic package on May 12, 2020. Following which, the Finance Minister,Ms. Nirmala Sitharaman, made daily detailed press conferences for fivedays. The package aims to promote self-reliance in India (“Atma-Nirbhar Bharat Abhiyan”) Further, it aims to reduce the financial strain on the country due to the pandemic. The package of Rs 20 lakh crore has been divided between measures that the government is taking now and the measures that it has taken earlier. Here’s the break-up of ₹20 lakh crore stimulus package:
  • 3. 03 Items : Rs (crores) Part1 : 594,550 Part 2 : 310,000 Part 3 : 150,000 Part 4&5 : 48,100 Earlier measures : 801,603 Global Total : 20,97,50
  • 4. 04 Tranche 1: ₹5,94,550 crore · The five-part stimulus package announced beginning May 13 comprised ₹5.94 lakh crore in the first tranche that provided credit line to small businesses and support to shadow banks and electricity distribution companies. · Emergency working capital facility for businesses including MSMEs: ₹3 lakh crore · Subordinate debt for stressed MSMEs: ₹20,000 crore · Fund of fund for MSMEs: ₹50,000 crore · EPF support for businesses and workers: ₹2,800 crore · Reduction in EPF rates: ₹6,750 crore · Special liquidity scheme for NBFCs, HFCs and MGIS: ₹30,000 crore · Partial credit guarantee scheme 2.0 for liabilities of NBFCs and MFIs: ₹45,000 crore · DISCOMS: ₹90,000 crore reduction in TDS/TCS rates: ₹50,000 crore
  • 5. 05 Tranche 2: ₹3,10,000 crore · The second tranche included free food grain to stranded migrant workers for two months and credit to farmers, totaling ₹3.10 lakh crore. · Free food grain supply for migrant workers for 2 months: ₹3,500 crore · Interest subvention for MUDRA Shishu loans: ₹1,500 crore · Special credit facility for street vendors: ₹5,000 crore · Housing CLSS-MIG: ₹70,000 crore · Additional emergency WCF through NABARD: ₹30,000 crore · Additional credit through KCC: ₹2 lakh crore
  • 6. Tranche 3: ₹1,50,000 crore · Stimulus under Part-3 which included incentives for Food Micro Enterprises, totaling 1.5 lakh crore. · MFEs: ₹10,000 crore · PM Matsya Sampada Yojana: ₹20,000 crore · TOP to TOTAL: ₹500 crore · Agri infra fund: ₹1 lakh crore · Animal husbandry infra development fund: ₹15,000 crore · Promotion of herbal cultivation: ₹4,000 crore · Beekeeping initiative: ₹500 crore
  • 7. Tranche 4+5: ₹48,100 crore · The fourth and fifth tranches that dealt mostly with structural reforms totaled to ₹48,100 crore. · Viability gap funding: ₹8,100 crore · Additional MGNREGS: ₹40,000 crore This COVID relief package puts bold reforms to make India self-reliant so that any other crisis that may emerge in the future could be efficiently tackled.