20 Major highlights – FM announcement of economic package for Small traders, worker, Self- employed people and farmers

Finance Minister

Finance Minister Nirmala Sitharam announced second part of economic package on 14th May 2020 in the amidst of Corona virus. On 13th May 2020 FM Sitharaman Announced special relief and credit support to MSMEs.

Today’s initiatives include a total of 9 measures:

  • 3 related to Migrant workers
  • 1 related to Street vendors
  • Small traders
  • Self- employed people
  • 2 on Small farmers
  • 1 on housing

1. Interest subvention for loans to farmers, normally given for prompt repayment, further extended to May 31, 2020

2. Rs. 3 crore marginal farmers had received loans worth  Rs 4 lakh crore at low rates. RBI also provided moratorium to them.

3. 25 lakh new Kisan Credit Card sanctioned with a loan limit of Rs. 25000 Crore.

Economic Package for special relief and credit support to economy

4. Liquidity Support to Farmers and Rural Economy provided post COVID19 as part of Aatma Nirbhar Bharat Package :

  • 63 lakh loans of Rs. 86,600  Crore approved in agriculture between 01st  March 2020 to 30th April 2020
  • Refinancing of Rs. 29,500 crore provided by NABARD to Cooperative Banks and Regional Rural Banks in March, 2020.
  • Working Capital limit of Rs. 6700 Crore sanctioned for Procurement of Agricultural Produce to State Government Entities Since March, 2020
  • Support of Rs. 4200 Crore Provided under Rural Infrastructure Development Fund to State during March 2020

5. support for Migrants and Urban Poor:

  • Govt permitted State Governments to utilise SDRF for setting up shelter for migrants
  • Central Government released Rs 11,002 crore of its contribution in advance to all States on 3rd April

6. Support for Migrant and Urban Poor during last two months:

  • 12,000 Self Help Groups (SHGs) have produced more than 3 crore masks and 1.2 lakh litres of sanitizers during COVID-19 period
  • Revolving funds are being provided to SHGs through PAISA portal
  • 7,200 new SHGs for urban poor have been formed during the last two months
  •  Rs 11,000 crore given to states for taking care of migrant workers and others
  • 3 meals per day for urban homeless, entirely at expense of central govt.
  • Govt permitted State Governments to utilise State Disaster Response Fund (SDRF) for setting up shelter for migrants
  • Central Government released Rs 11,002 crore of its contribution in advance to all States on 3rd April

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7. MANREGA supports to returning Migrants

  • More than 14.6 crore MNREGA person days have been generated till yesterday, 40%-50% higher compared to last May
  • Work has been offered to 2.33 crore wage seekers in 1.87 lakh gram panchayats
  • Returning Migrant workers will be gainfully engaged
  • 14.62 crore person-days of work generated till 13th May 2020
  • Actual Expenditure till date is around Rs. 10,000 Cr

8. Liquidity Support to Farmers and Rural Economy provided post COVID19

  • 63 lakh loans worth  Rs 86,000 crore approved in agricultural area, in just two months, March and April 2020.
  •  Rs 29,500 crore refinanced by NABARD in March alone
  • FM  notes how govt. has been working to put money in hands of farmers during COVID19

Life Insurance Premium Relaxation to Policyholders – Upto 31.05.2020

9. Government Committed to the welfare of Workers’:

  • Make Right to Minimum Wages universal (now, applicable only to 30% of workers)
  • Remove regional disparity in minimum wages, through a National Floor Wage Concept which can be accepted by all states
  • We are looking at re-skilling of workers who have lost their jobs, and social security scheme for gig workers
  • All occupations should be open for women, with provision for night working rights and adequate safeguards
  • Want to reduce 44 Labour Acts to 4 codes, Labour Minister has engaged with all strata of workers to ensure their concerns are addressed, we are committed to getting this passed in Parliament – Finance Minister
  • We want to have a better definition for inter-state migrant workers, to better reach benefits to them
  • Portability of welfare benefits for migrant workers and making Employees’ State Insurance Corporation (ESIC) coverage pan India are other aspects we are working on,

10. Extending EPF Support for business and organised workers for another 3 months for salary months of June, July and August 2020 – will provide liquidity for workers in MSME and other Businesses.

10 FAQ’s on Withdrawal Facility at Point of Sale (PoS) Terminals by RBI

11. Migrant Workers / Urban Poor to have Affordable Rental Housing Complexes (ARHC): Government will launch a scheme under PMAY

  • FM, Nirmala Sitharaman announces affordable Rental Housing for migrants and urban poor, to be launched under PMAwas Yojana
  • With this, urban poor and migrants can look forward to having some basic accommodation for themselves, says FM

12 Free Food for Migrant Workers:

  • Free Food grain supply to Migrants for 2 months
  • Black small square About 8 crores migrants to benefit from this
  • Black small square Rs. 3500  Crore will be spent on this intervention for 2 months:

13. Free Food Supply

  • Free food grain to be supplied to around 8 crore migrants for 2 months
  • Those who do not hold central / state ration cards will be given 5 kg of rice/wheat and 1 kg of chana for next two months
  •  Rs 3,500 crore cost to be borne by Central Govt.

7 FAQ’s on ECR Filing and Payment of Contributions

14. We have made adequate provisions to ensure that returning migrant workers needing work will be engaged, states and UTs have been asked to provide them work as per provisions of MNREGA Act.

15. One Nation One Ration Card

  • PDS ration cards to be portable across India, can be used in any part of the country
  • 67 crore beneficiaries – 83% of all Public Distribution System (PDS) population – to be covered by this
  • 100% coverage by Mar 2021

16. Government to support nearly 50 lakh street vendors

  • Rs 5000 cr Special Credit Facility for StreetVendors;
  • Initial Working Capital upto Rs. 10000

Annual Return : GSTR 9 and GSTR 9C date extended – Notification released

17. Mudra – Shishu Loan

  • Government of India will provide Interest subvention of 2% for prompt MUDRA-Shishu  Loans payees for a period of 12 months
  • Relief of Rs 1500 cr to MUDRA-Shishu  loanees

18. Government to extend the Credit Linked Subsidy Scheme  (CLSS)  up to March 2021; 2.5 lakhs middle income families to benefit during 2020-21

19. Affordable accommodation for migrants and urban poor will be provided through:

  • Converting govt. housing
  • Incentivizing industries to develop rental housing complexes on their private land
  • Incentivizing state/central govt. organizations too

ICSI Request To MCA For Compliance Relaxations

20. Compensatory Afforestation Management and Planning Authority (CAMPA) Funds

To create job opportunities for Tribals /Adivasis -Plans worth Rs 6000 crores to be approved shortly

21. Rs 2 lakh crore concessional credit will be initiated that will benefit 2.5 crore farmers


The author of the above article is CS Lalit Rajput, Partner at Xcede Consultech LLP.
Email id: [email protected]

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