Topics Covered: Government policies and interventions for development in various sectors and issues arising out of their design and implementation.
Economic Stimulus package
What to study?
For Prelims and Mains: Measures announced and their significance.
Context: Union finance minister Nirmala Sitharaman has unveiled the second tranche of measures of the government’s “atmanirbhar (self-reliant) campaign”.
Background:
With a view to revive the economy shuttered by the coronavirus lockdown, PM Narendra Modi had announced a Rs 20 lakh crore special economic package.
In its first instalment, FM had announced Rs 3 lakh crore collateral-free automatic loans for businesses, including MSMEs, as well as Rs 30,000 crore liquidity facility for NBFCs, among other measures.
Key measures announced:
- Free food grains will be supplied to all Migrant labourers for 2 months i.e. May and June, 2020.
- Technology system to be used to enable Migrants to access PDS (Ration) from any Fair Price Shops in India so as to achieve 100% National portability by March, 2021 under One Nation one Ration Card scheme.
- Central Government will launch a scheme for migrant workers and urban poor to provide ease of living at affordable rent.
- Government of India will provide Interest subvention of 2% for prompt payees for a period of 12 months to MUDRA Shishu loanees, who have loans below Rs 50,000.
- A special scheme will be launched within a month to facilitate easy access to credit to Street vendors. 50 lakh street vendors will be benefitted under this scheme and credit of Rs. 5,000 crore would flow to them.
- Rs 70,000 crore boost is given to housing sector and middle-income group (MIG) through extension of Credit Linked Subsidy Scheme for MIG under PMAY(Urban) up to March 2021.
- 6,000 crore of funds under Compensatory Afforestation Management & Planning Authority (CAMPA)will be used for Afforestation and Plantation works, including in urban areas. This will create job opportunities.
- NABARD will extend additional re-finance support of Rs 30,000 crore for meeting crop loan requirement of Rural Cooperative Banks and RRBs. This refinance will be front-loaded and available on tap.
- A special drive to be conducted to provide concessional credit to PM-KISAN beneficiaries through Kisan Credit Cards. Fisherman and Animal Husbandry Farmers will also be included. This will inject additional liquidity of Rs 2 lakh crore in the farm sector.
InstaThink:
Prelims Link:
- What is CLSS?
- Loads under MUDRA Yojana.
- NFSA eligibility.
- CAMPA- features, funds and utilisation.
- NABARD- objectives and functions.
- PM- KISAN- features, eligibility and benefits.
Sources: pib.