Employees will get interest-free festival advance as a prepaid credit in RuPay cards, not in cash that can be withdrawn from ATMs: FM Sitharaman.
The central government can get festival advance to use till 31 March 2021. Employees will have to repay in 10 installments.
Government announces a one-time festive advance of Rs 10,000 for all central government employees, irrespective of designation.
Consumer demand of nearly Rs 28,000 crore will be generated from the LTC cash voucher scheme: FM Sitharman
The consumer demand will get a boost of Rs 5,675 crore by central government employees availing the LTC cash voucher scheme and the same for PSUs will be Rs 1,900 crore.
Employees can spend LTC cash voucher only through digital mode and at places registered under GST before 31 March 2021: FM Sitharaman
Employees can avail cash voucher for LTC if they can’t travel due to pandemic. Employees can use the money to buy something of items attracting 12 per cent or more GST, increasing consumer demand: FM Sitharaman
LTC cash voucher scheme and special festive advance scheme on today’s cards: FM Sitharaman
FM Sitharaman to make announcements for poor, weaker sections today.
FM starts speaking on economic issues, aims at boosting consumer demand.
FM Sitharaman is likely to announce some measures ahead of the festive season to boost demand, and is expected to present a report card on the state of the economy.
Finance Minister Nirmala Sitharaman to address press conference soon.
A Special Liquidity Scheme was announced under which Rs 30,000 crore of investment were to be made by the government in both primary and secondary market transactions in investment-grade debt paper of Non-Banking Financial Companies (NBFCs), Housing Finance Companies (HFCs), and Micro Finance Institutions (MFIs). The central government assured to provide 100% guarantee for these securities.
The government announced collateral-free automatic loans of up to Rs 3lakh crore. through which MSMEs can borrow up to 20% of their entire outstanding credit as on February 29, 2020 from banks and Non-Banking Financial Companies (NBFCs). Borrowers with up to Rs 25 crore outstanding and Rs 100 crore turnover were eligible for such loans and could avail the scheme till October 31, 2020. Interest on the loan was to be capped and 100% credit guarantee on principal and interest were to be given to banks and NBFCs.
The government has revealed its plans to privatise PSEs, except the ones functioning in certain strategic sectors which will be notified by the government. In strategic sectors, at least one PSE will remain, but the private sector will also be allowed. To minimise wasteful administrative costs, number of enterprises in strategic sectors will ordinarily be only one to four; others will be privatised/ merged/ brought under holding companies.
The government had annoucned to increase the borrowing limits of state governments from 3% to 5% of GSDP for the year 2020-21. This is estimated to give states extra resources of Rs 4.28 lakh crore. It was also announced that there will be an unconditional increase of up to 3.5% of GSDP followed by 0.25% increase linked to reforms on – universalisation of ‘One Nation One Ration card’, Ease of Doing Business, power distribution and Urban Local Body revenues. Further, there will be an increase of 0.5% if three out of four reforms are achieved.
In the wake of a prolonged slowdown in India, the government had cut the corporate tax rate for all existing domestic companies, announced an incentive for new manufacturing domestic companies, cut minimum alternate tax (MAT) rate, exempted individuals earning income up to Rs 5 lakh from income tax, and increased standard deduction.
On May 12, PM Modi had announced a special economic package of Rs 21 lakh crore with the aim of making the country independent against the tough competition in the global supply chain and to help in empowering the poor, labourers, migrants who have been adversely affected by COVID. Following this announcement, the FM Sitharaman, through five press conferences, announced the detailed measures under the economic package.
India’s economy hit a record low of a 23.9 per cent contraction in Q1 FY21 as pandemic brought industries to a halt and rendered millions of people jobless.
In an effort to keep the economy afloat amid slowdown and pandemic, the government has been consistently trying to support businesses and industries by carrying out major reforms in various fields such as slashing corporate tax, land reforms, agriculture reforms, etc.
Finance Minister Nirmala Sitharaman will address media at 12:30 pm today, on the economic issues prevailing in the country.