Sitharaman Speech HIGHLIGHTS: MGNREGA budget hiked by addt’l ₹40,000 crore

The central government today hiked the MGNREGA budget hiked by an additional ₹40,000 crore. Finance minister Nirmala Sitharaman today completed the announcement of the last leg of the ₹20 lakh crore economic package announced by Prime Minister Narendra Modi earlier.

FM @nsitharaman Ji has today announced additional allocation of Rs.40,000 crore for MGNREGS scheme. I congratulate Hon PM @narendramodi Ji for his concern and timely initiative to provide adequate work and income earning opportunities to migrant families returning home.

— Jagat Prakash Nadda (@JPNadda) May 17, 2020

Sitharaman also announced that public sector enterprises or PSUs will exit non-strategic areas and private companies will be allowed to enter all sectors.

KEY TAKEAWAYS

-I have not announced anything on bank mergers, clarifies Sitharaman

-RBI measures of ₹801,603 included in ₹20 lakh crore economic package

-Total stimulus package is worth ₹20,97,053 crore

-Fourth and fifth tranche is worth ₹48,100 crore

-Stimulus measures announced in third part: ₹1.5 lakh crore

-Second tranche was worth ₹310,000 crore

-Economic package tranche 1 was worth ₹594,500 crore

-Stimulus measures from earlier announcements was worth ₹192,800 crore: Sitharaman

-Revenue loss due to tax concession: ₹7,800 crore

-This will give states extra resources of ₹4.28 lakh crore: FM

-Centre has decided to accede to the request and increased borrowing limits of states from 3% to 5% for 2020-21.

-States have so far borrowed only 14% of the limit authorised but 86% of the authorised borrowing remains unutilised.

-Revenue deficit grants to states worth ₹12,390 crore given on time in April and May, despite Centre's stressed resources.

-Devolution of taxes worth ₹46,038 crore in April was given fully as if Budget estimates were valid, even though actual revenue shows unprecedented decline from Budget estimates.

-Number of PSUs in strategic sectors will be maximum four. Others will be privatised or merged.

-In certain sectors, PSUs will be privatised.

-New policy to broadly categorise strategic sectors

-Public sector enterprise policy: All sectors will be open to private sectors also while PSUs will play an important role in defined areas.

-Lower penalties for all defaults for small companies, one-person companies, producer companies and start-ups.

-Companies listing only NCDs on stock exchange will not be regarded as listed companies.

-Direct listing of securities in foreign jurisdictions permitted: FM

-The amendments in Companies Act will de-clog criminal courts and NCLT.

-Decriminalisation of Companies Act violations involving minor technical and procedural defaults, majority of compoundable offences sections to be shifted to internal adjudication mechanism: FM

-Minimum threshold to initiate insolvency proceedings raised to ₹1 crore from ₹1 lakh. This will largely insulate MSMEs.

-No fresh insolvency proceedings upto 1 year: FM

-Debts related to Covid shall be excluded from IBC: Sitharaman

-Top 100 universities will be permitted to automatically start online courses by May 30 this year.

-Education: Extensive use of radio, community radio and podcasts

-The definition of "COVID-related debt" will be announced soon in a notification: FM

-One TV channel will be earmarked for every class from 1 to 12.

-Sitharaman will give the break-up of the ₹20 lakh crore economic package shortly.

-Health and wellness centres in urban and rural areas will be increased: FM

-Public health expenditure will be increased: FM

-Govt to allocate additional ₹40,000 crore for MGNREGA to provide employment boost. It will help generate 300 crore person days in total.

-Online education during Covid: Provision for live telecast of interactive channels with experts through Skype.

-The central govt has already announced ₹15,000 crore healthcare funds. to fight Covid-19.

-7 steps to be announced today — MGNREGA, health (rural and urban), education, business and Covid, decriminalisation of Companies Act, ease of doing business, public sector enterprises and state governments' resources.

-12 lakh EPFO subscribers withdrew ₹6,060 crore under the Covid pandemic withdrawal.

-Jan Dhan account: 20 crore women got more than ₹10,000 crores.

-FM recalls PM Gareeb Kalyan Package Yojna. PM Gareeb Kalyan Package Yojna: Direct benefit transfer has reached 8.9 crore farmers. Amount disbursed ₹16,394 crores.

The finance minister had announced some big-bang reforms yesterday related to coal, mining and defence manufacturing.