Cabinet approves Rs 6.29 lakh crore Covid-19 stimulus package announced by Sitharaman

The Union Cabinet on Wednesday approved the Rs 6.29 crore stimulus package announced by Finance Minister Nirmala Sitharaman to revive the economy amid the second wave of COVID-19, the Minister of Finance said on Wednesday. Information and Broadcasting Union Prakash Javadekar.

Announcing a loan guarantee of Rs 1.1 lakh crore for sectors affected by COVID, the FM said that Rs 50,000 crore would be allocated to the health sector to develop medical infrastructure, especially in underserved areas. In addition, Rs 60,000 crore will be reserved for other sectors with interest rates capped at 8.25%.

It also announced an additional crore of Rs 1.5 lakh for ECLGS (emergency credit line guarantee program), launched under the “Atmanirbhar Bharat Package” in May 2020. With the latest announcement, the overall cap guarantee eligible under the program has been increased. at Rs 4.5 lakh crore from Rs 3 lakh crore earlier.

Also read: Cabinet winks at BharatNet plan via PPP model; to cover inhabited villages in 16 states

Sitharaman had also announced financial guarantees through commercial banks scheduled for loans to new or existing MFIs or MFIs for on-lending up to Rs 1.25 lakh to around 25 lakh from small borrowers.

Capital / personal loans will also be provided to people in the tourism sector to pay off debts and restart businesses affected by COVID-19. The program will cover 10,700 regionally recognized tourist guides and other travel and tourism players.

The Center also extended Atmanirbhar Bharat Rozgar Yojana until March 31, 2022, from June 30, 2021, earlier. Launched in October last year, the program encourages employers to create new jobs and restore lost jobs through the EPFO.

The FM also said the Center would spend an additional 23,220 crore rupees on short-term health emergency preparedness for the COVID-19 pandemic. The new program will place special emphasis on children, pediatric care and pediatric beds.

The government will provide an additional corpus to the National Export Insurance Account (NEIA) over 5 years to enable it to subscribe for an additional Rs 33,000 crore of project exports. It will also inject equity into Export Credit Guarantee Corporation (ECGC) over 5 years to increase export insurance coverage to Rs 88,000 crore.

Sitharaman had also announced an additional expenditure of Rs 19,041 crore for BharatNet to expand and upgrade broadband connectivity to cover all gram panchayats and inhabited villages.

With previously announced spending of Rs 93,869 crore to provide free food grains to the poor until November and an additional subsidy of Rs 14,775 crore for fertilizers, the stimulus package, which mainly consists of the government guarantee to the poor. banks and microfinance institutions for their loans to 19 affected sectors, totaling up to Rs 6.29 lakh crore.

Also Read: FM Sitharaman Announces Rs 6.29-lakh Cr Stimulus Package

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