In the previous article, it was highlighted that out of the Rs. 12.95 L cr (Lakh crores) outlay by the Centre (excluding the liquidity support of Rs.8.03 L cr that RBI extended to Banks/Financial Institutions) on the Atmanirbhar package, a sum of Rs 18,500 cr was immediately allocated and disbursed to address the plight of the migrant workers, the urban poor and the requirements in the health sector to fight COVID. The balance outlay of Rs 12.77 L.cr could be categorized under four heads (Graph 1).
Rural Employment and Housing interest subvention are existing schemes with the amounts, an addition to whatever was budgeted for the year. With migrants returning home the increased outlay on rural Employment is welcome. The increased outlay on Housing interest subvention for the lower income families, is to ensure that Housing Finance Companies continue to promote this basic economic building activity.
Of the Rs 6.17L cr outlay for business, around Rs 70,000 cr ( 11%) are funds infusion into the business , either through reliefs or discounts (Graph 2). The balance 89% is by way of additional loans and guarantees. The moot question is whether the upturn in business is dependent on funds availability or is it dependent on a pickup of demand (consumption).
It is in the food sector that the Centre has been more aggressive, infusing Rs 1, 70,000 cr in the PM Garib Kalyan initiatives and an additional Rs 149,400 cr in improving the infrastructure in areas as diverse as beekeeping, herbal, fisheries and agriculture (Graph 3). That is 43% of the outlay, as compared to 11% for business. The balance 57% is in the nature of loans and guarantees.
TAGS: Market Research, Agriculture, Opportunities from Govt. stimulus for COVID