The government has announced a slew of measures including a stimulus package estimated to cost Rs 20 lakh crore. Onmanorama cracks some key numbers that the government has announced as part of the stimulus and its implications.
The loans for Micro, Small & Medium Enterprises (MSMEs) will cost the government Rs 3 lakh crore. There is no need for a collateral to avail this scheme. Eligibility is for those with Rs 25 core outstanding or MSMEs with turnover of up to Rs100 crore.
About 45 lakh MSMEs are to benefit from the loan scheme, with tenure of four years.
There would be no need to pay principal for 12 months. The loan scheme can be availed till Oct 31.
Power distribution companies (Discoms) will benefit with a Rs 90,00 crore bounty from the Centre.
With a 25 per cent cut in Tax Deducted at Source and Tax Collected at Source, the government is pumping in RS 50,000 Crore into the system. The 25% TDS and TCS rate cut comes into force from May 14 and will be effective till March 31, 2021.
The Employees’ Provident Fund Organisation (EPF) contribution has been reduced to 10% from 12% for employers and employees. This will cost the government Rs 6,750 crore. This cut will be in effect for 3 months and will result in more take home salary for employees.
It will also benefit 6.5 lakh businesses. The government will continue EPF support for business and workers for three more months. This will in effect provide a liquidity relief of Rs 2,500 crore.
Rs 50,000 crore equity infusion for MSMEs is aimed at expanding the size of Micro, Small & Medium Enterprises (MSMEs) as well as their capacity.
The government intends to boost its pet Make In India project by doing away with the global tenders for procurement costing up to Rs 200 crores. Tenders will be needed if the cost is above that limit.
The total package, which the government claims accounts to 10 per cent of the Gross Domestic Product, is to be partly funded by additional borrowing already announced by the Centre.
