Step towards recovery: Helping India tide over the COVID crisis

Due to the COVID-19 pandemic, we increased our gross market borrowing target from Rs 7.8 lakh cr to Rs 12 lakh cr. This entire situation is evolving and only 2 months of the current year (financial) have passed. We could scale down the borrowing estimate if the situation improves. We have catered to every segment of society and sector. RBI had announced an extension for the moratorium on term loans till August 31, 2020.

Tax refunds to the tune of Rs 27,000 cr have been issued to 17 lakh taxpayers to ensure they have enough liquidity during this lockdown. Central government will pay the PF contribution of both the employee and employer’s 12%+12% for the next six months also extending further Rs 2,500 cr in benefits to people. If more measures are required, we will not hesitate to take them.

Stimulating demand

Demand and supply do not work in silos and measures on the supply side do affect the demand side as well. Consumer demand is improved by giving financial and other income supports to the people. Around 41 cr people have received financial assistance of Rs 52,608 cr under Pradhan Mantri Garib Kalyan Yojana (PMGKY) already. Over Rs 18,000 cr have been given which has reached 9 cr farmers. Over Rs 20,000 cr was credited to more than 20 cr women Jan Dhan account holders in two instalments. Further, Rs 2,807 cr has been disbursed to about 2.82 cr old age persons, widows and physically-challenged persons in two instalments. Over 2.20 cr building and construction workers got Rs 3,950 cr. These DBTs have directly gone into the accounts of people.

Further, a total of around 7 cr people have already taken free gas cylinders under Ujjwala scheme and a total of Rs 9,000 cr has been transferred to bank accounts as DBT. Our Rs 1 lakh cr allocation to MNREGA will provide additional income support to people, especially migrants going back to their villages. Our historic reforms in agriculture will endure towards increasing farmers income throughout India. The Central government will pay the PF contribution of both the employee and employer’s 12%+12% for the next six months also extending further Rs. 2,500 cr benefit to people. 12 lakh EPFO holders got online withdrawal of advance. The reduced 25% TDS and TCS rates for non-salaried sections will give an additional Rs 50,000 cr liquidity. All these measures will stimulate demand.

Foodgrain allocation

Under the PM Garib Kalyan package, 87.51 lakh MT foodgrains have been lifted from FCI godowns to benefit 80 cr individuals. In addition to that, we have distributed 1 kg pulses per family benefiting 20 cr households, with a total of 1.15 lakh MT pulses being distributed. Further, we announced that migrants who are neither NFSA or State Card beneficiaries in the state they are stationed will be provided 5 kg of grains per person and 1 kg chana per family per month for two months. Around 8 cr migrants will benefit due to this step. We are doing everything we can to make sure that no citizen of our nation is bereft of foodgrains and other essentials.

MSME growth

The underlying theme behind the Aatma Nirbhar Package that we announced was Self- Reliant India. We want to create opportunities for our MSME sector to grow and expand. We also amended the definition of MSMEs so that the small enterprises can grow in size and still obtain the benefit of being an MSME. Our decision to do away with global tenders for procurements upto Rs 200 cr was taken keeping in mind that this would create more opportunities for this sector.

E-market linkage for MSMEs will be promoted to act as a replacement for trade fairs and exhibitions. All these steps will create a plethora of opportunities for our Indian businesses, especially MSMEs. Over Rs 10,361.75 cr loans have been sanctioned by PSBs under 100% Emergency Credit Line Guarantee Scheme. Out of this, Rs 3,892.78 cr has already been disbursed. MSMEs in over than 3,000 Tier-II towns were covered in one day, under the collateral-free loans that will enable them to pay salaries, rent, and restocking expenses. We are regularly reviewing the implementation of our announcements.

Pandemic response

The Ministry of Health and Family Welfare is doing a tireless and commendable job fighting this pandemic. In fact, 15 countries most impacted by COVID-19 have together reported 34 times more cases and 83 times more deaths than India, despite their cumulative population being almost equivalent to that of India. India has over 1 lakh people who have recovered from COVID-19.

No one knows when this pandemic will end. We will continue to evaluate the scenario as it progresses and take feedback from relevant stakeholders. The government is here to support Indians and India Inc and our measures will continue in that spirit.

— The writer is Minister of State for Finance and Corporate Affairs