Rs 1.7 Lakh Crore Relief Package For Poor

Nirmala Sitharaman, Finance minister of India has announced a slew of measures to deal with the economic distress caused due to the COVID-19 pandemic and the subsequent lockdown announced to deal with the situation.

Nirmala Sitharaman had already announced some measures on Tuesday that included easing minimum balance norms for a savings account, an extension of tax deadlines, and an increased threshold of insolvency filing to Rs 1 crore from Rs 1 lakh.

Here's what the FM said:

PM Gareeb Kalyan Scheme will entail Rs 1.7 lakh crore. It will include both cash transfer and food security. Provide insurance cover worth Rs 50 lakh for doctors, nurses, ASHA workers, sanitation workers, and paramedics in case they need it as they are on the front lines of the corona battle.

For 80 crore poor, or two-third of the population, over and above 5 kg of rice or wheat that is already given, another 5 kg per person will be given free through the Public Distribution System. Besides, one kg of preferred and region-specific choice of a pulse will also be given, said Sitharaman.

The CII (Confederation of Indian Industry) lobby group, had sought a stimulus of about 1% of the GDP or Rs 2 lakh crore, has sought a 3-month moratorium on all loans and said all repayment obligations should be suspended for this period.

Meanwhile, The PM had announced an Economic Task Force to be chaired by the finance minister. The 21-day lockdown announced by PM Modi will affect the revenue stream of companies and hit their bottom lines hard.

Various rating agencies have revised downwards their Q4 economic growth projections and also the growth estimates for the next fiscal year FY21.

On Wednesday, Union minister Prakash Javadekar had said that the Centre is supporting various state governments in relief for the poor.

The measures come when the US Senate has passed the $2 trillion aid package for the US economy that has been hit hard by the COVID-19.