Government Relief Package

Indian Government Relief Package

The fight of the Nation against the Coronavirus pandemic is intensifying day by day. The business community has borne the brunt of all these even more and companies are having a roller-coaster ride, to say the least! Significant concerns related to business continuity are being raised from all quarters.

The Government has announced relief measures. This is the only helping hand to make the financial stability standstill. The Government has agreed to pay lakhs of crores to compensate for the pandemic’s effects.Many funds, policies, and relief are brought into action to compensate for the losses and to make living better during this lockdown.

On March 26, 2020, the country took its first initial step to help the Nation’s poor plight after the entry of pandemic. Relief includes the following:

• Free grains and other food items for poor families below the poverty line for three months
• Insurance for the health care workers have been stretched
• 30 million citizens received a one-time cash payment
• 87 million farmers have been partly benefited with the one-time cash payment
• Women and ladies in the innermost rural areas are given free cooking gas
• During this lockdown, many construction workers and one-day pay workers are benefited from the payment.

Benefits of the Packages:

On May 13, 2020, the honorable Prime Minister of India introduced a new program called the “Self Reliant India”. He declared $266 billion, which included both before and after lockdown finances. At present, he claimed the fiscal amount of $27 billion, which is classified into five packages. These packages include general purposes and not law-related purposes.

• This package has a complete focus on business and taxes.
• It deals with small and medium business fields.
• It offers direct, full, and partial loans to business.
• It also includes extending deadlines for tax filing and has decreased payroll taxes.

• This package focuses on the farmworkers.
• Here, the poor people, farmworkers for the most part migrants are assisted with the help.
• This takes full credit to the farmers.
• Food is being supplied to the migrant people.

• This package is well defined for agriculture, the backbone of our Nation’s economy.
• Farm supply chain and infrastructure are improved.
• Mainly, the agricultural regulations are reformed in such a way that it is much easier for the farmers to sell crops and stockpile.

• This has the complete vision for our Nation’s economy being modernized.
• Here, coal and mineral mining regulations are loosened to increase the private-sector being involved much.
• Military procurement regulations are changed.
• Airport and airline regulations are revised easier.
• The power utilities are privatized.

• Since the business has been stopped during this lockdown period, it is more difficult for them to compensate, the financial crisis' lead.
• To help them out, this package has given way to reform the whole business regulations thereby increasing state government limits of borrowing.
• It has increased funds to rural workers for their work programs.

Mega 20 lakh crore packages:

Out of the total Nation’s GDP amount, 10% of the amount has been declared to the Indian government relief scheme to save the thrashed economy of the country. A wholesome amount of 20 lakh crore under the Atmanirbhar Bharat Abhiyan has been allocated to rescue the nation.

More than 22 lakh health workers at government hospitals who are fighting these pandemic battles, will be provided with 50 lakh health insurance for three months prior.

The Indian relief scheme is included for doctors, nurses, medical sanitary workers, paramedics and ASHA (Accredited Social Health Activist) workers

• Through the Public Distribution System (PDS), every individual will receive 5 kg of rice for free
• 80 crore people are benefited with 1kg pulse for households under the relief of India.
• Cash Transfers and Other Benefits over Next Three Months
• Two instalments of Rs 1000 are given to more than 3 crore pensioners, widows, and the disabled.
• Rs 500 per month will be credited to more than 20 crore women possessing Jan Dhan Yojana account
• Under the Ujjwala scheme, more than 8.3 crore families will receive cooking gas connections for free.

• Under the Mahatma Gandhi National Rural Employment Guarantee Act scheme, Rs.182 to Rs.202 a day is given as wages to people
• To help the construction workers, Rs.31, 000 crores will be used for Building and Other Construction Workers Welfare Boards to help more than 3.5 crore workers all over the nation.
• For the medical checkups like testing and treatments, the amount under the District Mineral Funds can be utilized.

• Rs. 2000 will be paid for each, under the PM-KISAN income support scheme from April.

These packages will focus on labor, agriculture, laws, and liquidity.

• 80 lakh employees will be benefited by the Employees Provident Fund (EPF). This comprises of the companies where there are less than 100 workers who earn less than Rs.15,000/-
• Women self-help groups under the National Rural Livelihood Mission are given loans that are doubled to Rs. 20 lakh. This will benefit more than 7 crore people.
• Immediate Impact of the announcement on the market
• The Sensex and Nifty are crashing due to the pandemic. Now, they are being lifted.
• The rupee has weakened against the US Dollar during the pandemic.
• The crude oil prices have increased.

Positive Points:

• From farmers to health care workers, every individual striving hard in this pandemic is being benefited by the Indian relief.
• Current packages like the PM-KISAN packages are made use now to people who are stuck in this pandemic. Hence, there can be uplift soon.
• Food Corporation of India’s (FCI) excess stocks can be disposed of, under the PM Gareeb Kalyan Yojana application forms.
• The Food Corporation of India (FCI) and the National Agricultural Cooperative Marketing Federation of India now have 77.6 mg of cereals which is 3.5 times more than required.
• Both employees and employers will be benefited Small business companies being forcibly closed can also be benefited.

As the Finance Minister said, in the last two months, the amount that the poor people received was 33,176 crore so far. This includes:

• To women holding Jan Dhan account holders, Rs 10,025 crore has been distributed.
• To farmers, Rs 16,394 crore was given under PM Kisan Yojana (payment without additional fiscal cost)
• To old persons, disabled and the widows, Rs 2,807 crore has been given.
• To construction workers around the nation, Rs 3,950 crore has been distributed which paid from the Building and Construction Workers’ Cess Welfare Fund (without including the fiscal amount)

Thus, the Indian Government relief has made life a bit easier for people during this pandemic. During this lockdown, everyone has to stay united to overcome this dreadful pandemic.

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