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From EPF regulations to medical insurance: Centre announces 1.75 lakh crore-package to deal with Coronavirus Lockdown

The following measures were announced by the Finance Minister while addressing a press conference in New Delhi on this day:

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Union Minister of Finance Nirmala Sitharaman on Thursday, as part of the central government, unveiled a fiscal stimulus package of Rs 1.7 lakh crore to help the poor and migrant workers (the economically weaker section of the society) of India deal with the economic difficulties arising out of the coronavirus disease (COVID-19) pandemic in the country. The measures, revealed under the "Prime Minister Gareeb Kalyan Scheme", include direct benefit cash transfers and food security amid the countrywide lockdown.

"No one will go hungry," the Sitharaman said while unveiling the schemes, highlighting that the government's priority is to help the poor deal with the financial hardships arising out of this coronavirus-necessitated lockdown. Besides the poor, the scheme also keeps other marginalised sections of the society in mind - such as women, pensioners and the differently-abled.

The following measures were announced by the Finance Minister while addressing a press conference in New Delhi on this day:
 

  • The central government will pay the Employment Provident Fund (EPF) contribution of both the employer and the employee for the next three months. The scheme will be only applicable to companies with up to 100 employees, where 90% of the employees are getting less than Rs 15,000 as salary.
     
  • The central government will amend the EPFO regulations, claiming that it will benefit 4.8 crore employees. After the amendment, workers under EPFO will be allowed to draw up to 75% of their non-refundable advance or three months of wages, whichever is lower.
     
  • The government will ensure a medical insurance cover of Rs 50 lakh per person for those on the frontline of the fight against COVID-19, i.e. healthcare and sanitation workers. "With a deep sense of gratitude, I announce that all medical staff, Aasha workers, paramedics, doctors, and nurses, will get this insurance," Sitharaman said.
     
  • Every household under the PM Gareeb Kalyan Scheme will receive 5 kg of rice or wheat per month, free of cost, in addition to what they receive under the National Food Security Act already. The household will also be eligible to get 1 kg of pulses free for three months.
     
  • Women working with self-help groups will eligible to receive collateral-free loans worth Rs 10 lakh, under the Deen Dayal Upadhyaya National Rural Mission scheme. The cap has been raised to Rs 20 lakh.
     
  • Farmers will get the first installment of their yearly payment of Rs 6,000 under the Direct Cash Transfer scheme. Three crore widows, pensioners, and the specially-abled will receive a one-time ex-gratia of Rs 1,000. Besides these, 20 crore women who have Jan Dhan accounts will receive an ex-gratia of Rs 500 for three months.
     
  • Below Poverty Line (BPL) families will get free gas cylinders for cooking, for three months.
     
  • A central 'District Minerals Fund' has been created. Various state governments would be able to use funds from this to help conduct tests and other medical expenditures to battle the coronavirus pandemic.

Earlier on Tuesday, the Finance Minister had announced some measures to deal with coronavirus pandemic, including the extension of tax deadlines till June 30, easing minimum balance norms for savings accounts, and raising the threshold of insolvency filing from Rs 1 lakh to Rs 1 crore.

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