Steps will boost liquidity, says PM Modi
New Delhi, May 13: Union Finance Minister Nirmala Sitharaman on Wednesday announced Rs 300 crore package for MSMEs and a slew of measures for other sectors to give life to economy battered from the impact of coronavirus which even on 50th day of nationwide lockdown.
The measures highlighted by Sitharaman were part Rs 20 lakh crore package announced by Prime Minister Narendra Modi to spur growth and make India self-reliant.
To support struggling MSME sector, the government announced collateral-free automatic loans worth Rs three lakh crore. It also revised the upward investment limit.
For taxpayers, the government reduced the rates of Tax Deduction at Source (TDS) and Tax Collection at Source (TCS) by 25 per cent till March 21, 2021.
To provide more take home salary for employees and to give relief to employers, the EPF or Employee Provident Fund contribution is being reduced for businesses and workers for three months, the government said today. This will amount to a liquidity support of Rs 6,750 crore, said the government, in the first of many tranches of the economic package announced by Prime Minister Narendra Modi yesterday to tackle the economic impact of coronavirus and weeks of lockdown.
PM hails announcements
Meanwhile, Prime Minister Narendra Modi hailed the measures announced by Finance Minister Nirmala Sitharaman and said announcements by her will go a long way in addressing issues faced by the businesses, especially MSMEs.
‘Today’s announcements by FM@nsitharaman will go a long way in addressing issues faced by businesses, especially MSMEs. The steps announced will boost liquidity, empower the entrepreneurs and strengthen their competitive spirit,’ the PM tweeted.
The Minister on Wednesday announced a series of measures to provide relief to the MSMEs Sector, which has been among the worst-hit by the present lockdown.
