Modi government is ready for another stimulus package for bleeding economy. This relief package announcement expected this week. It is expected to offer sash support to small businesses and migrant labourers in this package. This will be the second such relief announcement after the corona impact and lockdown.
The outline of the second stimulus package is almost ready as per sources. These packages will be announced in a phased manner. According to officials, the government has reviewed the economy several times.
They planned the industry working after the third phase of the lockdown ending on May 17. The first phase of the incentive package may focus on MSMEs and migrant workers. This package can announce for the most affected service sector due to lockdown.
Several meeting took place between PMO and Finance Ministry
There are several meetings that took place between the PMO and Finance Ministry officials. That meeting was to decide the framework for the second stimulus package. The PMO is exercising complete secrecy about this incentive package.
Only necessary information shared with government officials and stakeholders. Recently, the government has raised the borrowing target from Rs 7.8 lakh crore to Rs 12 lakh crore. This is for the current financial year.
The nationwide lockdown had the greatest impact on the MSME sector. Most MSMEs operations are shut down due to the corona lockdown. The government can announce the Credit Guarantee Scheme to help MSMEs.
The government will provide a guarantee to the MSMEs from banks under this scheme. This will be equal to 10 to 15 per cent of the working capital with a guarantee on it. If an MSME defaults in loan payments, the government will pay it.
Cash support can be offered to migrant workers
As per the media report, the government may announce a cash incentive for migrant labourers. This support amount will be given for three to 6 months. The government can make a provision of 15 to 20 thousand crores in the package.
The government may announce more funds for food subsidy and job guarantee schemes. If more migrant workers return home from their earlier state on the job.
The first Stimulus package announced with 1.7 lakh crore
The lockdown enforced people to remain locked in homes due to coronavirus. To help the poor and labourers, the government announced an incentive package of Rs 1.7 lakh crore in March. The package included direct cash transfer, free food for the poor.
We hp with these announcement governments include the middle class of the country. They left out in all earlier announcements from the central and state government. There is a huge impact on their life too.
