Tuesday, May 21, 2024

FM announces Atmanirbhar 3.0 stimulus; indicators of ‘distinct recovery’

Finance minister Nirmala Sitharaman has announced a new stimulus package totalling up to Rs 2.65 lakh crore under Atmanirbhar 3.0 on Thursday.

Noticing that there were quite “indicators showing a distinct recovery” in the economy, the minster announced a slew of measures for the economy hit by Coronavirus pandemic-induced situations.

The minister has also unveiled Atma Nirbhar Bharat Rozgaar Yojana, a new scheme to encourage job creation, as part of Atmanirbhar 3.0 stimulus measures

New employees who come under Employees Provident Fund Organisation (EPFO) but were never covered under it or had lost their jobs between March 1 and September 30 this year, would receive benefits under the new Yojana. The scheme will be effective from October 1,2020 and would remain in force till June 30, 2021.

Those establishments with less than 50 employees must recruit at least 2 new employees and organisations with more than 50 employees must employ at least 5 new employees. The month of September would be the base for the scheme.

For organisations with up to 1,000 employees who earn up to â‚¹ 15,000 per month and are registered under EPFO, the 12 per cent contribution of the employees and 12 per cent from the employer – amounting to a total 24 per cent – will be borne entirely by the Central government. 

Among the “indicators of growth”, it was pointed out that

·        The composite purchasing power index (PMI) rose to 58.9 per cent in

·        October versus 54.6 per cent in the previous month, registering strongest increase in output in close to nine years;

·        Energy consumption growth was higher in October at 12 per cent, year-on-year, while Goods and Services Tax (GST) collections have grown to 10 per cent to over Rs 1.05 lakh crore;

·        Daily railway freight tonnage grew by 20 per cent average on year-on-year versus 12 per cent; the bank credit has improved to 5.1 per cent;

·        Foreign direct Investment (FDI) inflows in April-August at USD 35.37 billion has witnessed a 13 per cent rise on a year-on-year basis.

Minister of State for Finance, Anurag Thakur said Moody’s rating for the country has improved. “Markets are on a record-high. India’s foreign exchange reserves are $560 billion…RBI has said India will do better in Q4.”

As for farmers, Rs 25,000 crores has been disbursed to farmers from Additional Emergency Working Capital Funding through NABARD, as mentioned by Sitharaman.

Further, credit boost has been given to 2.5 crore farmers through Kisan Credit Cards, Rs 1.4 lakh crores has been distributed to them.

The one-nation-one-ration card scheme is now implemented in 28 states and UTs with effect from September 1, 2020.

“It now covers 68.6 crore beneficiaries who now have the option to lift their foodgrain from any FPS of choice in any of these 28 states/UTs,” she said.

The breakdown of the stimulus package value of Rs 2,65,080 crore:

·        Housing for all (PMAY-U): Rs 18,000 crores;

·        Boost for Rural Employment:  Rs 10,000 crores;

·        R and D grant for Covid Suraksha (Indian vaccine development): Rs 900 crore;

·        Industrial Infrastructure, Industrial incentives and domestic defence equipment: Rs 10,200 crore;

·        Boost for Atmanirbhar manufacturing—production-linked incentives: Rs 1,45,980 crore;

·        Support for Agriculture-Fertiliser subsidy: Rs 65,000 crore;

·        Boost for infrastructure-equity invusion in NIIF Debt PF: Rs 6,000 crore;

·        Atmanirbhar Bharat Rozgar Yojana (overall Rs 36,000 crore): Rs 6,000 crore

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