New Delhi: The government announced Thursday a Rs 3.16 lakh crore package of free foodgrains for migrant workers. The government also declared concessional credit to farmers and working capital loan for street vendors. These were part of the second tranche of fiscal stimulus to heal an economy hit hard by coronavirus lockdown.
Benefits for migrant workers
At a news conference, Finance Minister Nirmala Sitharaman announced the beneficial measures. She said eight crore migrant workers will get five kilograms of grains and one kilogram of pulses free for two months. Fifty lakh street vendors rendered jobless by the lockdown would be given a working capital loan of Rs 10,000 each. As many as 2.5 crore farmers will be provided Rs 2 lakh crore of concessional credit through Kisan Credit Cards.
Sitharaman said the central government will bear Rs 3,500 crore, the cost of giving free foodgrain and pulses to migrant workers. State governments will be responsible for implementation, identification of migrants and full distribution.
Also to benefit of migrant workers, the government plans to allow inter-state portability of ration cards under public distribution system (PDS). This will allow them to use their cards anywhere to get benefit.
Relief for farmers
Also for post-harvest (Rabi) and current Kharif crop requirements in May and June, NABARD will help. It will provide Rs 30,000 crore additional emergency working capital funding for farmers. This funding will take place through rural cooperative banks and regional rural banks.
Boost for housing sector
Sitharaman also announced a Rs 70,000 crore boost to the housing sector. This will happen through one-year extension of subsidised loan for affordable houses for the middle-income group. Those with an annual income of Rs 6 lakh to Rs 18 lakh will be known as the middle income group. She said the scheme is being extended by one year to benefit 2.5 lakh middle income families.
For small businesses, the minister announced a two per cent interest subvention under MUDRA-Shishu loans of up to Rs 50,000. This would cost the government Rs 1,500 crore. For street vendors, the working capital loan would cost Rs 5,000 crore.
Increasing employment opportunities
Sitharaman also announced Rs 6,000 crore employment push, using Compensatory Afforestation Management and Planning Authority (CAMPA) funds.
Prime Minister Narendra Modi had on Tuesday announced a cumulative package of Rs 20 lakh crore (nearly 10 per cent of GDP). This was done to provide relief to various segments of the economy.
The remaining of the Rs 20 lakh crore package is being announced in tranches. Sitharman had in the first tranche Wednesday unveiled a Rs 5.94 lakh crore plan. It comprised of off-budget items such as Rs 3 lakh crore of credit line to small businesses as support to shadow banks.
Devastating lockdown effect
India had – beginning March 25 – imposed a three-week-long nationwide lockdown. This is the most far-reaching measure undertaken by any government to curb the spread of the pandemic. The lockdown brought most of the economic activity to a standstill. Factories and businesses were shut and thousands were rendered jobless. The lockdown has since been extended twice through May 17, with some relaxations to allow the resumption of economic activity.
PTI