Finance Minister Nirmala Sitaram addressed media on the insights of the 20Lakh Crore economic package announced by PM Modi on 12th May 2020. The economic package 2020 aims to spur growth and make India self-reliant. Self-reliant India is based on 5 pillars- Economy, infrastructure, System, Demography, Demand: Sitharaman.
The whole initiative is named “Atmanirbhar Bharat Abhiyan”.this definitely aims at India being self-reliant but does not mean that it will be an isolationist country. We shall not forget that we do have a responsibility towards the poor, needy, the migrants workers, divyang and the aged of the country said Finance Minister Nirmala Sitharaman while addressing Economic package 2020.
The intention is to make local brands and take them into the global level: Nirmala Sitharaman.Collateral free automatic loans to MSMEs worth Rs3 Lakh Crore. These have 4-year tenor, valid up to October 31st, 2020 said Finance Minister Nirmala Sitharaman while announcing Economic package 2020.
while Nirmala Sitharaman briefed about various reliefs given to MSME, Power Distribution Companies, relief to contractors, Special Liquidity Scheme for non-banking financial companies, the major relief was also given in EPF. In order to provide more take-home salary for employees and to give relief to employers in payment of PF, EPF contribution is being reduced for businesses & workers for 3 months, amounting to liquidity support of Rs 6750 crores.
Statutory PF contribution of both employee and employer will be reduced to 10% each from existing 12% for all establishments covered by EPFO for next 3 months.
CPSEs and State PSUs will however continue to contribute 12% as employer contributions. This scheme will be applicable for workers who are not eligible for 24% EPF support under PM Garib Kalyan Package. This will provide relief to about 6.5 lakh establishments covered under EPFO and about 4.3 cr such employees