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COVID-19 Relief packages for businesses announced by the Government

COVID-19 Relief packages for businesses announced by the Government

Covid-19 has not only taken a toll on human lives and hit the normal lifestyle of the citizens of the country, but has also tremendously affected the economic scenario. With the lockdown extending from one month to the next, businesses have been tremendously hit specially for the small enterprises.

Due to the ongoing financial crisis that was slowly grasping the businesses; the government took a great initiative by launching the Rs. 20 lakh crore relief package.

The announcement came from Prime Minister Narendra Modi in the form of a special economic package that has been formulated along with the RBI of Rs 20 lakh crore package which amounts nearly to 10% of India’s GDP.

This package was declared for labourers, taxpayers, SMEs, MSMEs, as well as farmers.

Finance minister Nirmala Sitharaman, during a press conference briefed about this relief package while mentioning that the PM Garib Kalyan Yojna of Rs 8.01 lakh crore that was announced by the RBI were also a part of this package. She also stated that the Rs 1.92 lakh crore package

that provided free food grain and cooking gas to the poor were also an integral part of this package.

The 1st stimulus package was announced on 13th May and comprised of Rs 5.94 lakh crore which provided credit to small businesses, banks as well as electricity distribution companies. The exact details can be found in the image attached below:

The 2nd package was that of Rs 3.10 lakh crore which was used to provide free foodgrain and financial support to stranded migrant workers as well as credit for farmers.

The 3rd package came as a relief for the agricultural infrastructure and allied sectors with a total sum of Rs 1.5 lakh crore.

The 4th and 5th package mainly supported structural reforms and was of a sum of Rs 48,100 crore.

Note- Image credit- Times Of India

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