Prime Minister Narendra Modi says Nirmala Sitharaman's announcement on Wednesday will boost liquidity, empower entrepreneurs and address immediate issues faced by businesses, especially MSMEs
Illustration/Uday Mohite
The series of measures announced on Wednesday by the government to boost the economy hit by the Coronavirus lockdown will enhance liquidity, empower entrepreneurs and strengthen their competitive spirit, Prime Minister Narendra Modi said.
He also said the announcements made by Finance Minister, Nirmala Sitharaman will go a long way in addressing issues faced by businesses, especially Micro, Small and Medium Enterprises (MSMEs). "The steps announced will boost liquidity, empower the entrepreneurs and strengthen their competitive spirit," the prime minister wrote on Twitter.
Seeking to boost the COVID-hit economy, Sitharaman announced '3-lakh crore collateral-free automatic loan for businesses, including Micro, Small & Medium Enterprises (MSMEs). This will benefit 45 lakh small businesses, she said, detailing parts of the '20-lakh crore economic stimulus. "Today's announcements by FM @nsitharaman will go a long way in addressing issues faced by businesses, especially MSMEs," Modi said.
The announcements by the finance minister came a day after Prime Minister Modi introduced massive new financial incentives on top of the previously announced packages for a combined stimulus of '20 lakh crore.
45 lakh
No. of small businesses that will benefit from collateral-free loans
For whom?
MSMEs
What? Definition revised; collateral-free automatic loans
How much? Rs 3 lakh crore
What will it do? Boost small enterprise
For whom?
Businesses
What? Reduced EPF contribution
How much? Up to Rs 6,750 crore
What will it do? Allow more take home for employees
For whom?
Income taxpayers
What? Extension of assessment term/tax filing deadline
Till when?
November 30
What will it do?
Allow people some liquidity
For whom?
NBFCs/HFCs/MFIs
What? Special liquidity scheme
How much? R30,000 crore
What will it do?: Ease the flow of credit
For whom?:
Discoms
What? One-time liquidity infusion
How much?
Rs 90,000 crore
What will it do? Enable to pay generation companies and eventually pass of benefits to customers
For whom?
Contractors
What? Central agencies to provide extension
For how long?
Six months
What will it do? Give them more time to complete work at no cost
For whom?
Taxpayers
What? Reduced rates of TDS/TCS
How much? By 25% of existing rates till March 31
What will it do? Provide more funds at the disposal of taxpayers
For whom?
Establishments
What? Statutory retiral benefits extended
For how long? By three months
What will it do? Will provide Rs 2,500 crore liquidity relief to 3.67 lakh firms and for 72.22 lakh employees
For whom?
The poor
What? Package of free foodgrains and cash
How much? Rs 1.7 lakh crore
What will it do? Will ease their problems in the COVID-19 situation
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