Finance Minister Nirmala Sitharaman Says, States, MNREGA, Business On Fiscal Stimulus List: 10 Points

Other sectors to get government support include health and education: Nirmala Sitharaman

New Delhi: Union finance minister Nirmala Sitharaman, in the fifth and final session of unveiling the Centre's Rs 20 lakh crore "Atma-Nirbhar Bharat" package, announced a big boost in spending on the MNREGA scheme, an upped borrowing limit for states, more relaxations for private players and big changes for health and education sectors. The minister announced seven fresh steps in the last phase of announcements. This list includes MGNREGA, heath, education, businesses and COVID, decriminalisation of Companies Act, ease of doing business, private sector and state governments. The minister also launched a sharp attack on the Congress and the opposition parties, accusing them of "playing politics" at a critical juncture. The final tranche of the announcement of the government's fiscal stimulus comes as the country is about to enter the phase 4 of lockdown and the total number of coronavirus cases crossed the 90,000 mark.

Here are the top 10 points in this big story:

States would be able to borrow more money, Nirmala Sitharaman said today, increasing their borrowing limit from 3 per cent to 5 percent. This would give them an Rs 4.28 lakh crore. The government is also increasing the advance limits for states by 60 per cent. The number of days a state can stay in continuous overdraft days has been increased from 14 days to 21 days and from 32 to 51 days quarterly, Ms Sitharaman said.
The government will also privatise state-run enterprises in non-strategic sectors and allow private companies to invest in all areas, Ms Sitharaman said."To minimise wasteful administrative costs, number of enterprises in strategic sectors will ordinarily be only one to four; others will be privatised or merged or brought under holding companies," she said.
For MSMEs (Micro, Small and Medium Industries), a special insolvency framework will be notified under Section 240 A of the Insolvency and Bankruptcy laws. From Rs 1 lakh, the insolvency proceedings limit have been raised to Rs 1 crore. This will be an ordinance and will be passed in parliament once it is in session.
With many businesses being severely affected due to the pandemic, Debts due to COVID-19 will not be included in defaults. No insolvency proceedings will be initiated against firms in such cases for upto one year, the government said.
Announcing an additional Rs 40,000 crore for the MNREGA scheme, Ms Sitharaman said, "Lots of migrant workers are going back to their states. This is to ensure that these workers find jobs in their home-states".
Infectious diseases block will be built in all district hospitals, the minister said. Laboratory networks in rural area not being adequate, public health labs will be built at block levels. Investments in grass-root level will be ramped up in terms of both clinics and wellness centres. The emphasis will be on hospitals and labs - both private and publicly funded, she added.
Learning from pandemic, the country's top 100 universities will be automatically start online courses by 30 May 2020 as part of the Prime Minister's e-vidya programme. There will also be extensive use of radio and podcasts and special e-content will be generated for visually and hearing impaired children.
With many students suffering from stress and needing psychological support during this lockdown, an initiative for psychological support of students, teachers and families is being launched immediately. This will be called Manodarpan.
Ms Sitharaman also launched a sharp attack on the Congress a day afer part leader Rahul Gandhi met the migrants. "Instead of wasting time of migrants and sitting with them, walk along with them and carry their suitcase. They call us dramebaaz. What about yesterday? That is dramabazi. Let us deal more responsibly with this issue -- this is my humble request to Sonia Gandhi," the minister said.
The country will enter the fourth phase of the lockdown tomorrow, in which the government is expected to announce relaxations in the aviation sector and road transport, including metro services. The number of coronavirus cases is now 90,927, recording the biggest single-day jump of 4,987 new patients. The figure includes 2,872 patients who died and more than 34,000 patients who recovered.