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Last set of announcement by finance minister towards economic revival

by Aravind Balaji
Finance minister announces last set reforms

Today the finance minister unveiled the last set of announcements (Courtesy: ANI) as a part of Rs. 20 lakh crore package targeted towards economic revival. This followed series of announcements for various sectors including MSMEs, agriculture, etc. Beginning yesterday structural reforms were announced in key sectors.

Announcements made today by Finance Minister

Finance Minister last press conference for economic revival

(Image courtesy: ANI)

The last set of reforms announcements today includes

  1. Exiting of Public Sector Units (PSU’s) from all non-strategic sectors and private companies will be encouraged to enter every industry.
  2. Increasing the allocation towards MGNREGA by Rs. 40000 crores for the purpose of increasing the livelihood of the poor.
  3. Increasing the borrowing limit of states from 3% to 5%.
  4. Formulation of policy which identifies strategic sectors and reducing the no of PSU’s in strategic units to a maximum of 4.
  5. Privatization of PSUs in certain sectors will be privatized.
  6. Reduction of penalties for small companies, one-person companies, production companies, and start-ups which default.
  7. Relaxation of criteria for companies that raise funds through Non-convertible debentures will not be considered as listed companies.
  8. Permitting listing of companies in foreign jurisdiction.
  9. Further amendments in the Companies Act are considered to reduce the no of cases.
  10. Decriminalization of Companies Act violations involving minor technical and procedural defaults, the majority of compoundable offenses sections to be shifted to internal adjudication mechanism.
  11. Insulating MSMEs by raising the minimum threshold to initiate insolvency from Rs. 1 lakh to Rs. 1 crore.
  12. No fresh proceeding to insolvency forĀ  1 year.
  13. Defining ‘debts related to COVID-19’into a new class and to be excluded from IBC.
  14. Permitting Top 100 universities to start online courses automatically.
  15. Increasing Health and wellness centers in urban and rural India.
  16. Increasing public health care expenditure.
  17. Special provision for online education.

The finance minister also gave up the break up of Rs. 20 lakh crore economic package announced. This includes

  1. The package announced includes liquidity measures of Rs. 8 lakh crore announced by the RBI.
  2. This also includes measures announced under PM Gareeb Kalyan Yojna.
  3. The first set of announcements was worth Rs. 5,94,500 crores.
  4. The second set of announcements was worth Rs. 3,10,000 crores.
  5. The third set of announcements was worth Rs. 1,50,000 crores.
  6. The fourth and fifth sets of announcements were worth Rs. 48,100 crores.
  7. The total stimulus package is worth Rs. 20,97,053 crores.

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