Insights of 20 Lakh Crore Economic Package

The announcement of 20 Lakh Crore Package included detailed expenditure on different fields. Some of the main points of the announcement related to the Economic Package are;

1. MSME (Small and Medium Enterprises)
1. Rs. 3 Lakh crore for giving loan without guarantee to small businesses.
2. 20,000 crore to promote those enterprises which are not performing up to the mark.
3. Reform: No foreign investments in tenders till 200 crore
4. Reform: Increased investment limit from 1 Crore to 5 Crore.
2. Salaried Employees
1. TDS reduced 25%.
2. PF Contribution reduced to 10%.
3. Farmers
1. Reform: Allowing farmers to horde some vegetables crops like potato and onion to sell at better price.
2. A Central law will be formulated to provide adequate choices to sell at attractive prices.
3. RS.1 Lakh crore to improve the agriculture infrastructure.
4. Rs.10,000 Crore to improve micro food enterprises.
5. Rs.20,000 Crore to provide insurance to fishermen under PM Sampada Yojna.
4. Other Fields
1. Welcomed privatization in Coal Sector, Aviation, Space Research and Defence Sector.
2. FDI Limit in Defense Sector increased.

Some Misconceptions;

Q1. Some old schemes like that of RBI were already announced, then why are they re-added in this economic package?

Ans. Those schemes were re-added in the economic package as there are some new reforms to those old schemes, plus some new announcements are also made in regard to them.

Q2. In terms of PF and TDS, Government is putting money from your left pocket to right pocket. The govt. isn’t spending anything from their treasury?

Ans. The Govt. is paying Employee and Employers contibution of more than 72 Lakh employers since the past 3 months and would continue to do so for the next 3 months. Here the govt. is paying from their own treasury.