Govt. unveils ₹6.28 lakh cr stimulus post second COVID wave

Govt. unveils ₹6.28 lakh cr stimulus post second COVID wave

Part of: GS Prelims and GS -III – Economy

In news

• The Indian Finance Minister announced some fresh relief measures for the economy, after the second COVID-19 wave.
  • It  focuses largely on extending loan guarantees and concessional credit for pandemic-hit sectors and investments to ramp up healthcare capacities.

Key takeaways

• Health: 
  • Government will provide guarantee and the interest rate will also be capped at 7.95%, 
  • This will be the maximum rate which the banks can charge while lending.
  • A separate ₹23,220 crore has been allocated for public health with a focus on paediatric care, which will also be utilised for increasing ICU beds, oxygen supply and augmenting medical care professionals for the short term by recruiting final year students and interns.
• Expansion of the existing Emergency Credit Line Guarantee Scheme (ECLGS) 
  • It is extended by ₹1.5 lakh crore. 
  • A new ₹7,500 crore scheme announced to guarantee loans upto ₹1.25 lakh to small borrowers through micro-finance institutions.
• Tourism: 
  • Free one-month visas for five lakh tourists, 
  • Plan to support over 11,000 registered tourist guides and travel agencies
  • Working capital or personal loans to be provided 
  • Loans will be provided with a 100% guarantee under the scheme to be administered by the Ministry of Tourism.
• New seed varieties for farmers and additional outlays over the next two years to expand broadband to all Gram Panchayats.