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COVID-19: FM makes Rs 1.7 lakh crore worth announcements; know how will it help you

Finance Minister Nirmala Sitharaman said the government has finalised an economic stimulus package to deal with the impact of 21-day countrywide lockdown to prevent spread of the virus.

Finance Minister Nirmala Sitharaman
Finance Minister Nirmala Sitharaman
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Published : Mar 26, 2020, 1:56 PM IST

Updated : Mar 26, 2020, 4:08 PM IST

New Delhi: Finance Minister Nirmala Sitharaman on Thursday stated the government is planning to provide a relief package of Rs 1.7 lakh crore to the underprivileged, poor and migrant workers affected by the lockdown amid COVID-19 outbreak.

The scheme has been named Pradhan Mantri Garib Kalyan Scheme.

Key announcements:

  • Rs 50 lakh insurance cover per person for doctors, paramedic, healthcare workers dealing with coronavirus outbreak as a medical insurance cover for them for three months. It will be benefiting around 20 lakh people.
  • Pradhan Mantri Gareeb Kalyan Ann Yojna (for next 3 months) will cover 80 crore poor people (2/3rd of India’s population), in addition to already allotted 5Kg of rice/wheat per person, an additional 5kg will be free. Additional 1kg pulse (according to regional preference) will be given.
  • 8.69 crore farmers to be immediately benefited through Direct cash transfers. Installment of Rs 2,000 in the first week of April will be transferred under the existing PM Kishan Yojana.
  • For workers, the daily wage under the MNREGA has been increased to Rs 202 from Rs 182, benefiting 5 crore workers who stand to gain about Rs 2,000 in all.
  • Old age, Divyang, pensioners: 3 crore people will be covered, one-time amount of additional Rs 1,000 in two installments through DBT (hence no middlemen) over 3 months to be given.
  • Welfare for building and construction workers: registered 3.5 crore workers to be benefited. Central Government has given orders to State Governments to use fund (Rs 31,000 crore) to provide relief.
  • 20.5 crore women Jan Dhan Account holders will get Rs 500 per month for the next three months, while poor senior citizens, widows and disabled will get a one-time cash dole of Rs 1,000.
  • Govt of India will pay the Employees' Provident Fund (EPF) contribution, both of employer and employee, put together it will be 24%, this will be for next 3 months. This is for those establishments which have upto 100 employees and 90% of them earn less that 15,000. This decision is going to benefit 4.8 crore workers.
  • Self Help women groups (7 crore houses holds covered), collateral-free loans doubled to 20 Lakh, to increase money in hand.
  • Poor women, who got free cooking gas under the Pradhan Mantri Ujjwala Yojana during the last three years, will get free LPG refills in the next three months to tide over tight finance following the nationwide lockdown, Finance Minister Nirmala Sitharaman said, adding this will benefit 8.3 crore women.
  • Workers to be allowed to draw non-refundable advance of 75 per cent from credit in PF a/c or 3 months salary, whichever is lower.
  • District Mineral Fund: Central Government to request State Governments to use this fund to augment medical testing and screening and providing health attention.
  • Rs 1.7 lakh crore economic package will be implemented with immediate effect; cash doles from April 1.

Read more:Major Step: Govt opens control room to monitor essential commodities flow

(Inputs from agencies)

New Delhi: Finance Minister Nirmala Sitharaman on Thursday stated the government is planning to provide a relief package of Rs 1.7 lakh crore to the underprivileged, poor and migrant workers affected by the lockdown amid COVID-19 outbreak.

The scheme has been named Pradhan Mantri Garib Kalyan Scheme.

Key announcements:

  • Rs 50 lakh insurance cover per person for doctors, paramedic, healthcare workers dealing with coronavirus outbreak as a medical insurance cover for them for three months. It will be benefiting around 20 lakh people.
  • Pradhan Mantri Gareeb Kalyan Ann Yojna (for next 3 months) will cover 80 crore poor people (2/3rd of India’s population), in addition to already allotted 5Kg of rice/wheat per person, an additional 5kg will be free. Additional 1kg pulse (according to regional preference) will be given.
  • 8.69 crore farmers to be immediately benefited through Direct cash transfers. Installment of Rs 2,000 in the first week of April will be transferred under the existing PM Kishan Yojana.
  • For workers, the daily wage under the MNREGA has been increased to Rs 202 from Rs 182, benefiting 5 crore workers who stand to gain about Rs 2,000 in all.
  • Old age, Divyang, pensioners: 3 crore people will be covered, one-time amount of additional Rs 1,000 in two installments through DBT (hence no middlemen) over 3 months to be given.
  • Welfare for building and construction workers: registered 3.5 crore workers to be benefited. Central Government has given orders to State Governments to use fund (Rs 31,000 crore) to provide relief.
  • 20.5 crore women Jan Dhan Account holders will get Rs 500 per month for the next three months, while poor senior citizens, widows and disabled will get a one-time cash dole of Rs 1,000.
  • Govt of India will pay the Employees' Provident Fund (EPF) contribution, both of employer and employee, put together it will be 24%, this will be for next 3 months. This is for those establishments which have upto 100 employees and 90% of them earn less that 15,000. This decision is going to benefit 4.8 crore workers.
  • Self Help women groups (7 crore houses holds covered), collateral-free loans doubled to 20 Lakh, to increase money in hand.
  • Poor women, who got free cooking gas under the Pradhan Mantri Ujjwala Yojana during the last three years, will get free LPG refills in the next three months to tide over tight finance following the nationwide lockdown, Finance Minister Nirmala Sitharaman said, adding this will benefit 8.3 crore women.
  • Workers to be allowed to draw non-refundable advance of 75 per cent from credit in PF a/c or 3 months salary, whichever is lower.
  • District Mineral Fund: Central Government to request State Governments to use this fund to augment medical testing and screening and providing health attention.
  • Rs 1.7 lakh crore economic package will be implemented with immediate effect; cash doles from April 1.

Read more:Major Step: Govt opens control room to monitor essential commodities flow

(Inputs from agencies)

Last Updated : Mar 26, 2020, 4:08 PM IST
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