Second tranche of economic stimulus package announced
Part of: GS Prelims and GS-III – Economy
- Second tranche of economic stimulus package was recently announced.
- This package shall benefit migrant workers, street vendors and small farmers.
- ₹10,000 crore has been spent in the last two months on creating man-days of work under the Mahatma Gandhi National Rural Employment Guarantee Scheme (MNREGS) to help migrant workers.
- The work has been offered to 2.33 crore wage seekers till May 13.
- About 40-50% more persons have been enrolled as compared to May last year.
- Universal right to minimum wages and a national floor wage are reforms which will be considered in the coming future.
- Free foodgrains for an estimated eight crore migrant workers for next two months at a cost of ₹3,500 crore.
- Migrant workers who do not have either Central or State Public Distribution System (PDS) card would get 5kg grains per person and 1kg of chana for two months.
- PDS ration cards would be made portable, allowing migrant workers to use their ration cards across States.
- This would benefit 83% of PDS beneficiaries, in 23 States by August.
- By March 2021, 100% coverage under ‘One Nation One Ration Card’ will be done.
Interest subvention on MUDRA loans
- A 2% interest subvention (subsidy offered on interest rates) shall be given under the MUDRA-Shishu loans of up to ₹50,000.
Housing subsidy scheme extended
- ₹70,000-crore boost to housing sector by extending the subsidy scheme for affordable housing to the middle-income group by one year to 2021.
- ₹5,000-crore special credit facility for street vendors by providing them with working capital of up to ₹10,000.
- ₹30,000-crore additional emergency working capital funding through the National Bank for Agriculture and Rural Development (NABARD).
- This loan will cover requirements of rural co-op banks and regional rural banks. This would benefit mostly small and marginal farmers.
Important value additions:
The Credit Linked Subsidy Scheme (CLSS)
- It is a benefit under the Pradhan Mantri Awas Yojana under which housing loan EMIs are reduced by over Rs. 2,000 per month by offering an interest subsidy.
- It focuses on helping
- Middle Income Groups
- Economically Weaker Sections
- Lower Income Groups