Centre announces Rs 2.65 lakh crore fresh Covid-19 stimulus package

The Centre on Thursday announced an additional Rs 2.65 lakh crore as part of a fresh Covid-19 stimulus package that includes Rs 65,000 crore of fertiliser subsidy, income tax relief to home buyers and developers and a new scheme to incentivise the creation of employment opportunities.

Finance Minister Nirmala Sitharaman also announced an extension of emergency credit support of Rs 3 lakh crore announced under the first stimulus package to 26 other stressed sectors including hotels, tourism, travel, textile and others, as identified by the K V Kamath Committee.

The date of the loan support, which was going to expire on November 30, was also extended till March 31, 2021.

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Under the new employment scheme, the government will give subsidy to those EPFO-registeterd organizations which hire new employees. The subsidy would be to cover the EPF contributions by employees as well as employers for two years. The scheme will cover any new employee joining an EPFO-registered establishment on monthly wages less than Rs 15,000.

The subsidy will be provided to those establishments employing up to 1,000 employees.

The minister also announced Rs 10,000 crore additional outlay towards the PM Garib Kalyan Yojana, to be used for MNREGA or PM Gram Sadak Yojana. This is over and above Rs 61,000 crore provided for MNREGA in the 2020-21 Budget and Rs 40,000 crore allocated under the first Covid-19 stimulus package.

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Sitharaman also announced income tax relief for home buyers and developers on houses up to Rs 2 crore till June 30, 2021.

Rs 900 crore was allocated to the Department of Biotechnology for the Covid Suraksha Mission for research and development of the Indian Covid-19 vaccine.

The total stimulus package provided by the Centre and the Reserve Bank of India so far amounts to Rs 29.87 lakh crore or 15% of the economy.

Sitharaman said the stimulus provided by the government alone accounted for 9% of the GDP.