Key Points From The Final Tranche Of Economic Package

Updated: May 24, 2020

Today’s announcements by Nirmala Sitharaman was the last leg of the ₹20 lakh crore economic package.

Here Are The Key Points From Today's Announcement -

  • 7 steps were announced today -- MGNREGA, health (rural and urban), education, business and COVID, decriminalization of Companies Act, ease of doing business, public sector enterprises, and state governments' resources.

  • The definition of "COVID-related debt" will be announced soon in a notification.

  • RBI measures of ₹801,603 included in ₹20 lakh crore economic package.

  • The total stimulus package is worth ₹20,97,053 crore. Fourth and fifth tranche is worth ₹48,100 crores. Stimulus measures announced in the third part was ₹1.5 lakh crore. The second tranche was worth ₹310,000 crores. The first tranche was worth ₹594,500 crores. Stimulus measures from earlier announcements were worth ₹192,800 crores. Revenue loss due to tax concession - ₹7,800 crore. This will give states extra resources of ₹4.28 lakh crore.

  • The number of PSUs in strategic sectors will be a maximum of four. Others will be privatized or merged. In certain sectors, PSUs will be privatized.

  • Lower penalties for all defaults for small companies, one-person companies, producer companies, and start-ups.

  • Companies listing only NCDs on a stock exchange will not be regarded as listed companies.

  • The minimum threshold to initiate insolvency proceedings raised to ₹1 crore from ₹1 lakh.

  • The amendments in the Companies Act will de-clog criminal courts and NCLT.

  • Top 100 universities will be permitted to automatically start online courses by May 30 this year.

  • Extensive use of radio, community radio, and podcasts for education.

  • One TV channel will be earmarked for every class from 1 to 12.

  • Govt to allocate an additional ₹40,000 crores for MGNREGA to provide an employment boost.

  • The central govt has already announced₹15,000 crore healthcare funds. to fight Covid-19.

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