20 Lakh Crore Package Details PDF Part 5 | Finance Minister Announcement

The Special Economic, 20 lakh crore package details is announced by Nirmala Sitaraman. This package is to build self-reliant India. The complete details about this Rs.20 lakh crore package Detail PDF Part 4 are available here. Candidates use this news for current affairs preparation.

Due to COVID-19, entire India is under lockdown for around 50 days. The current lockdown is coming to an end on May 17th. The central government will decide on lockdown matter after 17th May. There may be relaxations in the less affected areas. Prior to it, 2 days before, our Prime Minister Modi has announced a special economic package. The worth of Rs.20 lakh crore Package. Finance Minister Nirmala Sitaraman revealed the details of this Rs.20 lakh crore package Details. This package is to raise the economy of India. The concept of this 20 lakh crore package is to make a self-reliant economy in India. Also, candidates can use this news for their exam preparation. This is an important national economic news. So candidates prepare with the Rs. 20 lakh crore package details pdf.

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20 Lakh Crore Package Details PDF Part 5

आत्मनिर्भर भारत – Part 5

Hon’ble Prime Minister Shri Narendra Modi announced a Special economic and comprehensive package of Rs 20 lakh croreequivalent to 10% of India’s GDP on 12th May 2020. He gave a clarion call for आत्मनिर्भर भारत अभियान or Self-Reliant India Movement. He also outlined five pillars of Atmanirbhar Bharat 

  • Economy
  • Infrastructure, 
  • System, 
  • Vibrant Demography 
  • Demand

During the 5th Press Conference on stimulus package to fight COVID-19 under Aatma Nirbhar Bharat Abhiyaan, the Union Minister of Finance & Corporate Affairs Smt. Nirmala Sitharaman referred to the vision laid out by Prime Minister Shri Narendra Modi in his address to the Nation on 12th May 2020. Quoting the Prime Minister, Smt. Sitharaman said that as a Nation, we stand at a very crucial juncture. COVID-19 Pandemic has brought a message and an opportunity. We need now to build an Aatma Nirbhar Bharat.

Announcing the 5th and last Tranche of measures towards Government Reforms and Enablers, Smt. Sitharaman detailed seven measures for providing employment, support to businesses, Ease of Doing Business, and State Governments as well sectors such as Education and Health.


  • Rs 40,000 crore  increase in allocation for MGNREGS to provide employment boost
  • Increased investments in Public Health and other health reforms to prepare India for future pandemics
  • Technology Driven Education with Equity post-COVID
  • Further enhancement of Ease of Doing Business through IBC related measures
  • Decriminalization of Companies Act defaults
  • Ease of Doing Business for Corporates
  • Public Sector Enterprise Policy for a New, Self-reliant India
  • Increase borrowing limits of States from 3% to 5% for 2020-21 only & promoting State level reforms

1- Rs 40,000 crore increase in allocation for MGNREGS to provide employment boost

  • Government will now allocate an additional Rs 40,000  crore under MGNREGS
  • Will help generate nearly 300 crore person days in total
  • Address need for more work including returning migrant  workers in Monsoon season as well
  • Creation of larger number of durable and livelihood assets  including water conservation assets
  • Will boost the rural economy through higher production.

2- Increased investments in Public Health and other health reforms to prepare India for future pandemics

Increased investments in Public Health –


  • Public Expenditure on Health will be increased.
  • Investments in grass root health institutions


  • Ramp up Health and Wellness Centers in rural and urban  areas

Preparing India for any future pandemics –


  • Infectious Diseases Hospital Blocks – all districts
  • Strengthening of lab network and surveillance –


    • Integrated Public Health Labs in all districts & block level Labs & Public Health Unit to manage pandemics.
  • Encouraging Research–National Institutional Platform for One health by ICMR
  • National Digital Health Mission: Implementation of National Digital Health Blueprint

3- Technology Driven Education with Equity post-COVID

  • PM eVIDYA – A programme for multi-mode access to digital/online education to be launched immediately; consisting of:
  • DIKSHA for school education in states/UTs: e-content and QR coded Energized Textbooks for all grades (one nation, one digital platform)
  • One earmarked TV channel per class from 1 to 12 (one class, one channel)
  • Extensive use of Radio, Community radio and Podcasts
  • Special e-content for visually and hearing impaired.
  • Top 100 universities will be permitted to automatically start online courses by 30th May, 2020.
  • Manodarpan– An initiative for psychosocial support of students, teachers and families for mental health and emotional wellbeing to be launched immediately.
  • New National Curriculum and Pedagogical framework for school, early childhood and teachers will be launched: integrated with global and 21st century skill requirements
  • National Foundational Literacy and Numeracy Mission for ensuring that every child attains Learning levels and outcomes in grade 5 by 2025 will be launched by December 2020

4- Further enhancement of Ease of Doing Business through IBC related measures

  • Minimum threshold to initiate insolvency proceedings raised to Rs. 1 crore (from Rs. 1 lakh, which largely insulates MSMEs).
  • Special insolvency resolution framework for MSMEs under Section 240A of the Code to be notified soon.
  • Suspension of fresh initiation of insolvency proceedings up to one year depending upon the pandemic situation.
  • Empowering Central Government to exclude COVID 19 related debt from the definition of “default” under the Code for the purpose of triggering insolvency proceedings.

5- Decriminalization of Companies Act defaults

  • Decriminalization of Companies Act violations involving Minor technical and procedural defaults (shortcomings in CSR reporting, inadequacies in board report, filing defaults, delay in holding AGM).
  • Majority of the compoundable offences sections to be shifted to internal adjudication mechanism (IAM) and powers of RD for compounding enhanced (58 sections to be dealt with under IAM as compared to 18 earlier).
  • The Amendments will de-clog the criminal courts and NCLT
  • 7 compoundable offences altogether dropped and 5 to be dealt with under alternative framework

6- Ease of Doing Business for Corporates

  • Improvement in rankings in ‘starting a business’ and ‘insolvency resolution’ have contributed to the overall improvement in India’s ranking on EoDB. 
  • Further key reforms to include –
  • Direct listing of securities by Indian public companies in permissible foreign jurisdictions.
  • Private companies which list NCDs on stock exchanges not to be regarded as listed companies.
  • Including the provisions of Part IXA (Producer Companies)  of Companies Act, 1956 in Companies Act, 2013.
  • Power to create additional/ specialized benches for NCLAT
  • Lower penalties for all defaults for Small Companies, One-  person Companies, Producer Companies & Start Ups.

7- Public Sector Enterprise Policy for a New, Self-reliant India

  • India and the world have changed in the last few decades
  • Need for a new coherent policy—where all sectors are open to the private sector while public sector  enterprises (PSEs) will play an important role in defined areas
  • Accordingly, the government will announce a new policy whereby
  • List of strategic sectors requiring the presence of PSEs in the public interest will be notified
  • In strategic sectors, at least one enterprise will remain in the public sector but private sector will also be allowed
  • In other sectors, PSEs will be privatized (timing to be based on feasibility etc.)
  • To minimize wasteful administrative costs, number of enterprises in strategic sectors will Ordinarily be only one to four; others will be privatized/ merged/ brought under holding  Companies.

8- Increase borrowing limits of States from 3% to 5% for 2020-21 only & promoting State-level reforms

Support already extended to State Governments

  • Centre, like the states, has faced a sharp decline in revenues
  • Despite this the Centre has consistently extended generous support to states in this hour of need
  • Devolution of taxes (Rs 46,038 cr) in April was given fully as if Budget Estimates were  valid, Even though actual revenue shows unprecedented decline from Budget Estimates
  • Revenue Deficit Grants  to  states  (Rs 12,390 cr) given  on time in April and May, despite Centres stressed resources
  • Advance release of SDRF (Rs. 11,092 cr) funds in first week of April
  • Release of over Rs. 4,113 crores from Health Ministry for direct anti-Covid activities
  • At Centre’s request, RBI has increased
  • Ways & Means Advance limits of States by 60%
  • Number of days state can be in continuous overdraft from 14 days to 21 days
  • Number of day’s state can be in overdraft in a quarter from 32 to 50 days.

Supporting State Governments


  • States net borrowing ceiling for 2020-21 is Rs. 6.41 lakh crores, based on 3% of Gross  State Domestic Product (GSDP)


  • 75% thereof was authorized to them in March 2020 itself and timing is left to the States
  • States have so far borrowed only 14% of the limit authorized. 86% of the authorized borrowing remains unutilized.
  • Nevertheless, states have been asking for special increase in borrowing from 3% to 5%
  • In view of the unprecedented situation, Centre has decided to accede to the request and increase borrowing limits of States from 3% to 5%, for 2020-21 only.
  • This will give States extra resources of Rs. 4.28 lakh crores.

Supporting State Governments & promoting state level reforms

  • Part of the borrowing will be linked to specific reforms (including recommendations of Finance Commission) to:
  • ensure sustainability of the additional debt through higher future GSDP growth and lower deficits;
  • promote welfare of migrants and reduce leakage in food distribution,
  • increase job creation through investment
  • safeguard the interests of farmers while making the power sector sustainable, and
  • promote urban development, health and sanitation
  • Reform linkage will be in four areas: universalization of ‘One Nation One Ration card’, Ease of Doing  Business, Power distribution and Urban local body revenues
  • A specific scheme will be notified by Department of Expenditure on the following pattern:
  • Unconditional increase of 0.50%
  • 1% in 4 tranches of 0.25%, with each tranche linked to clearly specified, measurable and feasible reform actions
  • Further 0.50% if milestones are achieved in at least three out of four reform areas

Download  20 Lakh Crore Package PDF Details Part 5

Bifurcation of Total Amount of Relief Package Given by the GOI


  • Stimulus from earlier measures


Sl  no Measures Rs  crores
1. Revenue lost due to tax concessions since Mar 22nd 2020. 7,800
2. Pradhan Mantri Garib Kalyan Package (PMGKP) 1,70,000
3. PM’s announcement for Health sector 15,000
Total 1,92,800
  • Stimulus provided by announcements in Part-1
SN ITEM (Rs. Cr.)
1 Emergency W/C Facility for Businesses, incl MSMEs 3,00,000
2 Subordinate Debt for Stressed MSMEs 20,000
3 Fund of Funds for MSME 50,000
4. EPF Support for Business & Workers 2800
5. Reduction in EPF rates 6750
6. Special liquidity Scheme for NBFC/HFC/MFIs 30,000
7. Partial credit guarantee Scheme 2.0 for Liabilities of  NBFCs/MFIs 45,000
8. Liquidity Injection for DISCOMs 90,000
9. Reduction in TDS/TCS rates 50,000
Sub Total 5,94,550
  • Stimulus provided by announcements in Part-2
SN ITEM (Rs. Cr.)
1. Free Food grain Supply to Migrant Workers for 2 months 3500
2. Interest Subvention for MUDRA Shishu Loans 1500
3 Special Credit Facility to Street Vendors 5000
4 Housing CLSS-MIG 70,000
5 Additional Emergency Working Capital through NABARD 30,000
6 Additional credit through KCC 2,00,000
Sub-Total 3,10,000
  • Stimulus provided by announcements in Part-3
SN ITEM (Rs. Cr.)
1. Food Micro enterprises 10,000
2. Pradhan Mantri Matsya Sampada Yojana 20,000
3. TOP to TOTAL: Operation Greens 500
4. Agri Infrastructure Fund 1,00,000
5. Animal Husbandry Infrastructure Development Fund 15,000
6 Promotion of Herbal Cultivation 4,000
7 Beekeeping Initiative 500
Sub-Total 1,50,000
  • Stimulus provided by announcements in  Part-4 and Part-5
SN ITEM (Rs. Cr.)
1 Viability Gap Funding 8,100
2 Additional MGNREGS allocation 40,000
Sub-Total 48,100
  • Overall Stimulus provided by  Atmanirbhar Bharat Package
SN ITEM (Rs. Cr.)
1 Part 1 5,94,550
2 Part 2 3,10,000
3 Part 3 1,50,000
4 Parts 4 and 5 48,100
Sub-Total 11,02,650
5 Earlier Measures incl PMGKP (earlier slide) 1,92,800
6 RBI Measures (Actual) 8,01,603
Sub Total 9,94,403
GRAND TOTAL 20,97,053


Other Links On the Previous Announcement

Part 1 (Day 1) Part 2 (Day 2)
Part 3 (Day3) Part 4 (Day4)

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