Kerala FM terms Centre's financial package 'disappointing'; says 'nothing for the workers'

After Union Finance Minister Nirmala Sitharaman on Wednesday announced the 15 measures of the economic package, Kerala's Finance Minister Thomas Issac has termed the economic package as disappointing. Finance Minister Nirmala Sitharaman on Wednesday announced a Rs 3 lakh crore collateral-free automatic loan schemes for Micro, Small and Medium Enterprises along with five other major boosters aimed to revive the sector most hit with economic woes. 

Speaking to a leading news daily, Thomas Issac said that with the world trade going haywire, it appears the Centre is trying to create a ''self-reliant India'' and added that the package will not benefit or help the country. He added that it is disappointing as there is nothing for the workers in the package announced.

C.P. John, a former State Planning Board member and a key think tank of the Congress-led UDF, however, welcomed the measures announced by the Union Finance Minister. He said that it is heartening to note that detailed analysis has been done while coming to the aid of the MSME sector and it's a very good move. 

READ: Major relief for Central agencies contractors, RERA timelines to be extended by 6-months

READ: PM Modi issues first statement on FM's 15 announcements; cites benefit to entrepreneurs

15 measures of economic package unveiled

Currently, there are 74,281 confirmed novel coronavirus cases in India out of which 24,386 patients have recovered while 2,415 casualties have been reported. Earlier in the day, Union Finance Minister Nirmala Sitharaman unveiled the first set of 15 measures of the financial package worth Rs. 20 lakh crore. She stated that PM Narendra Modi laid down the vision of Aatmanirbhar India (self-reliant India) after deep consultation with several sections of the society. Sitharaman also mentioned that the focus of the package is on the factors of production- land, labour, liquidity, and others.

The measures to revitalise the MSME sector include Rs.3 lakh crore collateral-free automatic loans for businesses, including MSMEs, Rs. 20,000 crore subordinate debt for MSMEs, Rs. 50,000 crore equity infusion through MSME Fund of Funds, revising the definition of MSMEs and the prohibition of global tenders in government procurement tenders up to Rs.200 crore.

Other measures such as Rs. 2500 crore EPF support for business and workers for 3 more months, reduction of EPF contribution for business and workers for 3 months, Rs. 30,000 crore liquidity facility for NBFCs/HFCs/MFIs, Rs. 45,000 crore Partial Credit Guarantee Scheme 2.0 for NBFCs and Rs. 90,000 crore liquidity injection for DISCOMs were also announced. 

Furthermore, the registration and completion date of all registered projects expiring on or after March 25, 2020, shall be extended suo-moto by 6 months. The due date of income tax return, tax audit, assessments and the 'Vivad se Vishwas' scheme has also been extended. Additionally, all Central agencies shall provide an extension to construction work, service contracts etc. by 6 months. 

READ: FM Nirmala unveils India's Rs 20 lakh crore package: FULL list of first 15 measures here

READ: Govt changes Definition of MSMEs, revises investment limit; here's what is different