Government to allocate additional Rs 40,000 crore to boost employment ratio: FM
New Delhi: Finance Minister Nirmala Sitharaman on Sunday announced an additional allocation of Rs 40,000 crore under Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGS) in order to boost the employment ratio in the country. Ms. Sitharaman said that to prepare the country for any future pandemics, the Government of India will increase public expenditure on health and invest in grass-root health institutions.
Finance Minister Nirmala Sitharaman and Minister of State Finance Anurag Thakur addressed a joint press conference here. The press conference was conducted for the fifth and final tranche of announcements as part of the Prime Minister Narendra Modi’s Rs 20 lakh crore package to materialise the ‘Aatmanirbhar Bharat'(Self-Reliant India) vision.
Ms. Sitharaman said PM eVIDYA – a programme for multi-mode access to digital/online education will be launched immediately and top 100 universities will be permitted to automatically start online courses by May 30.
The Finance Minister said to promote State-level reforms, part of the borrowing will be linked to specific reforms like increasing job creation through investment and promoting urban development, health and sanitation. The Union Finance Minister said a new ‘Aatmanirbhar Bharat’ will stand on a new public sector enterprise policy. She said, “In strategic sectors, at least one enterprise will remain in the public sector. but the private sector will also be allowed. In other sectors, PSEs will be privatized.”
She further said that “The Centre has decided to accede to the request by States for a special increase in borrowing. Borrowing limits of States is being raised from 3 percent to 5 percent, for 2020-21 only”, she added.
“With an eye on further enhancement of ‘ease of doing business’, government announces suspension of fresh initiation of insolvency proceedings up to one year; decides to exclude COVID-19 related debt from the definition of “default” under IBC”, she said.