The government announced on Thursday a free food cereal package for migrant workers from Rs. 3.16, a soft loan for farmers and a working capital loan for street vendors as part of the second tranche of tax incentives, which has been severely affected by the coronavirus blockade.
At a press conference, Finance Minister Nirmala Sitaraman said that 8 immigrant women in Crorow will receive 5 kg of grain and 1 kg of legumes free of charge for two months, while 50 street vendors in Lahovyh who lost their jobs due to the blockade will receive a working capital loan from Rs. will receive 10,000 each.
Up to 2.5 million farmers receive preferential credits from 2 Lakhs on Kisan credit cards.
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NABARD will also provide farmers with additional emergency funding of Rs.30,000 for the post-harvest (Rabi) and the ongoing Harif harvest in May and June through cooperative village banks and regional village banks.
She also announced an increase of Rs. 70,000 in the housing sector through the extension of the one-year subsidised affordable housing loan for the middle-income group with an annual income of Rs. 6-18.
FM Nirmala Sitaraman | Photo: @ANI
The central government will cover the cost of 3,500 rubles for the free distribution of food in the form of cereals and legumes to migrant workers, Mr Seetharaman said. State governments will be responsible for the implementation, identification and full dissemination of migrants.
In addition, for the benefit of migrant workers, the government is planning to re-route food ration cards between states under the Public Distribution System (PDS) so that they can use their cards anywhere to receive benefits.
For small businesses, the minister announced a subsidy of 2% of a maximum of Rs. 50,000 for mudra shishu loans. It will cost the government 1,500 rupees.
Migrants arrive at the station after a trip from Kerala when they get on a bus to go home during the national blockade in Ranchi. Photo: ITP
A working capital loan for street vendors costs Rs 5000 Crore.
It also announced an increase in employment of Rs. 6,000 with resources from the Compensatory Forest Management and Planning Authority (CAMPA).
Prime Minister Narendra Maudie announced Tuesday a total package of 20 rupees of salmon (almost 10% of GDP) to support various segments of the economy. In particular, in March the supply of free food, grain and cash to the poor for three months and an incentive of Rs. 5.6 million under various monetary policies announced by the Reserve Bank of India (RBI).
IT’S STILL READABLE: Free food, grain and jobs for migrant workers as part of the second round of government incentives
The remaining part of the Lakh 20 rupee package will be announced in tranches – Sitarman presented the first tranche on Wednesday – a Lakh 5.94 rupee plan, consisting mainly of non-budgetary items such as a Lakh 3 rupee credit line for small businesses in support of shadow banks and energy companies.
Extra-budgetary items will not lead to problems in the exchequer, but this will help alleviate companies’ liquidity constraints once the embargo is lifted.
On 3 March, the government imposed a three-week period of national isolation, the most ambitious measure a government has taken to contain the spread of the pandemic. The blockade, which led to the closure of most economic activities, closing factories and businesses and temporarily putting thousands of people out of work, has since been extended twice, until the 17th century. May, with some easing to allow economic activity to resume.
It is estimated that the blockade led to the loss of 12.2 million jobs in April and the evaporation of consumer demand.