5th and Final tranche of Rs.20 lakh crore economic stimulus package is announced by the Finance Ministry

Finance Minister outlined structural reforms with focus on seven areas

• Finance Minister Nirmala Sitharaman unveiled the fifth and final tranche of financial stimulus
  and policy measures to help build a self-reliant India under the Atma Nirbhar Bharat Campaign
• The scheme is to implement several measures to fight COVID-19 at an allocated budget of Rs 20
  lakh crore economic
• Under the fifth tranche of the scheme, the finance minister announced seven steps for the
  economic stimulus

Salient highlights of the Final Tranche

Under the fifth tranche of the scheme, the finance minister announced seven steps

I. MNREGA

• The Government is to allocate Rs 40,000 crore for MNREGA scheme. This will help generate
  employment for 300 crore persons
• It is to be noted that, earlier, the health and sanitation workers have been included under
  MNREGA
• The funds will be used to make additional enrolments under the scheme

II. Health – rural and urban, including education

• The health and education expenditure is to be increased. The Government is to focus on
  improvising the infrastructure of these sectors
• All districts will have infectious disease blocks set up. Also, public labs are to be set up at
  district level
• A National Digital Health blueprint is to be implemented. Also, the Government will increase
  research in health

III. Businesses and corona virus

• No fresh insolvency proceedings will be initiated for one year. A special Insolvency framework
  will be notified under Section 240-A of the Insolvency and Bankruptcy code
• The minimum threshold to initiate insolvency processes has been increased from Rs 1 lakh to Rs
  1 crore

IV. Decriminalization of Companies Act

• The majority of compoundable offences under Companies act are to be shifted to internal
  adjudicating mechanism
• This will de-clog National Company Law tribunal and the criminal courts in the country

V. Ease of Doing Business

• The private companies that list non-convertible debentures on stock exchanges are to be
  considered as listed companies
• Also, direct listing of securities by public companies is to be done in permitted foreign
  jurisdictions

VI. Public Sector Enterprises

• A new public sector policy is to be brought in by the Government
• The new policy will allow private sector to participate all the key sectors along with the. The
  policy will also strategize key sectors
• The strategy will be brought in such a way that at least at least one public sector will be there in
  every strategic sector. The number of enterprises to be present in strategic sectors is four

VII. State governments and related resources

• Just like the Central Government, the state governments are also witnessing sharp drop in
  revenues
• Around Rs 46,038 crore have been so far devolved to state as tax revenue
• The advancing limits of states have been increased by 60%. Also, the Government increased the
  number of days a state shall stay in overdraft situation
• The Central Government will now allow the states to borrow up to 5% of GSDP (Gross State
  Domestic Product)
• This means that the states can now borrow an additional amount of Rs 4.28 lakh crore

Pic courtesy : thehindu.com