‘Borrowing limits of States is being raised from 3% to 5%, for 2020-21 only’

Union Finance Minister Nirmala Sitharaman addresses a press conference on the 5th and last tranche of announcements under Aatmanirbhar Bharat.

Health relaed steps taken so far

  • Government has committed Rs. 15,000 crore for health related measures so far for containment of COVID19 which includes Rs 50 lakh insurance per person for health professionals under #PMGKY

Corporate Law measures for ease of doing business

  • Corporate Law measures for ease of doing business have included timely action during COVID–19 to reduce compliance burden under various provisions of the Companies Act.

Online Education

  • Government has ensured Education of students does not suffer; SWAYAM PRABHA DTH channels have reached those who do not have access to the internet; DIKSHA platform has had 61 crore hits from 24th March.

Increase in MGNREGS allocation

  • To provide a fillip to employment, Government will now allocate an additional Rs 40,000 crore under MGNREGS; move will help generate nearly 300 crore person days in total.

Health Reforms & Initiatives

  • To prepare India for any future pandemics Government will increase Public Expenditure on Health and invest in grass root health institutions.

Technology driven education with equity

  • India is changing and so is our way of education PM eVIDYA – a programme for multi-mode access to digital/online education to be launched immediately; Top 100 universities will be permitted to automatically start online courses by 30th May.

IBC related measures

  • With an eye on further enhancement of Ease of Doing Business Government announces suspension of fresh initiation of insolvency proceedings up to one year; decides to exclude COVID 19 related debt from the definition of “default” under IBC.

Decriminalise Companies Act defaults

  • Government moves to decriminalise Companies Act defaults; 7 compoundable offences altogether dropped and 5 to be dealt with under alternative framework.

Ease of Doing Business for Corporates

  • Further key reforms for Ease of Doing Business are in the pipeline including direct listing of securities by Indian public companies in permissible foreign jurisdictions.

A new Public Sector Enterprise Policy

  • A new Aatmanirbhar Bharat will stand on a new Public Sector Enterprise Policy. In strategic sectors, at least one enterprise will remain in the public sector but private sector will also be allowed In other sectors, PSEs will be privatized.

Borrowing limits of States increased

  • Centre has decided to accede to the request by States for special increase in borrowing; borrowing limits of States is being raised from 3% to 5%, for 2020-21 only.
  • To promote State level reforms, part of the borrowing will be linked to specific reforms like increasing job creation through investment and promoting urban development, health and sanitation

Borrowing limits of States increased

  • To assist States, which are facing a sharp decline in revenues, Government has taken these measures.
  • Centre has decided to accede to the request by States for special increase in borrowing; borrowing limits of States is being raised from 3% to 5%, for 2020-21 only.
  • To promote State level reforms, part of the borrowing will be linked to specific reforms like increasing job creation through investment and promoting urban development, health and sanitation

Leave a Reply