Atmanirbhar Bharat- Actual Fiscal cost of the INR 20 lakh crore package & Who gets what?

The Finance Minister of India, Nirmala Sitharaman announced the various measures of the 20 lakh crore relief package over five tranches. However, these also included the relief announced by the Finance Minister earlier and liquidity measured provided by the RBI.

Here is the breakup of the INR 20 lakh crore package-



However, as per various experts, the actual fiscal impact on the budget will be only INR 1.5 lakh crore (0.75 per cent of GDP). This is due to the fact that many of the measures unveiled have been in the form of moves like loan guarantees which do not entail an immediate fiscal cost. The experts have added that the package is heavily skewed towards monetary measures. (Source- 1 & 2)


Who gets what?

Banking sector and other lending institutions such as NBFCs.

  • Infuse INR 1,00,000 crores in the banking system and consequently the economy through auctions of Long Term Repo Operations (LTROs) of up to 3 years. The banks to provide at least 50% of the liquidity to small NBFCs and MFIs.
  • Repo rate cut by 75 basis points to 4.4%.
  • Reduction of Cash Reserve Ratio by 100 basis points to 3% of Net Time Deposit Liability.
  • Increased Accommodation under the Marginal Standing Facility from 2% of SLR to 3%.
  • All banks, lending institutions may allow a three-month moratorium on all loans.
  • Lending companies, banks are allowed to defer interest on working capital repayments by three months
  • NPA classification to include the 90-day moratorium on loans.
  • Liquidity boost through TLTRO 2.0 worth INR 50,000 crores for NBFCs, HFCs and MFIs.
  • Special refinance facilities of INR 50,000 cr to NHB, SIDBI and NABARD.
  • Fixed reverse repo rate under LAF cut by 25 bps to 3.75 per cent from 4 per cent.
  • INR 30,000 crore special liquidity scheme, under which investments to be made in both primary and secondary market transactions in investment-grade debt paper of NBFCs/HFCs/MFIs
  • Existing Partial Credit Guarantee Scheme to be extended to cover borrowings such as primary issuance of Bonds/CPs of NBFCs, HFCs and MFIs with low credit ratings.

Farmers and other primary producers

  • Upfront payment of INR 2,000 in the first week of April.
  • Interest Subvention and Prompt Repayment Incentive on crop loans, due from 1st March, extended up to 31st May 2020.
  • 25 lakh new Kisan Credit Cards sanctioned with a loan limit of INR 25,000 crore.
  • NABARD to extend additional refinance support of INR 30,000 crores for crop loan requirement of Rural Co-op Banks & RRBs.
  • Financing facility of INR 1,00,000 crores to be provided for funding Agriculture Infrastructure Projects at farm-gate & aggregation points.
  • INR 10,000 crore scheme to help 2 lakh Micro Food Enterprises to attain technical up-gradation to attain FSSAI standards.
  • The government to launch the Pradhan Mantri Matsya Sampada Yojana for development of marine and inland fisheries. The expenditure is estimated to be INR 20,000 crores.
  • National Animal Disease Control Programme for Foot and Mouth Disease (FMD) launched with an initial outlay of INR 13,343 crores to ensure 100% vaccination cattle, buffalo, sheep, goat and pig population.
  • An Animal Husbandry Infrastructure Development Fund of Rs. 15,000 crore to be
    set up with an aim to support private investment in Dairy Processing.
  • Project to promote herbal cultivation where 10,00,000 hectare will be covered under Herbal cultivation in the next two years with an outlay of INR 4,000 crore.
  • INR 500 crore for beekeeping initiatives through infrastructure development.
  • Operation Green to be extended from Tomatoes, Onion and Potatoes to fruits and vegetables. It will provide a 50% subsidy on transportation from surplus to deficient markets and 50% subsidy on storage, including cold storages.

Businesses and MSMEs

  • Doubling of collateral-free loans to Rs 20 lakh for women self-help groups.
  • INR 3 lakh crores Collateral-free Automatic Loans for Businesses, including MSMEs
  • INR 20,000 crore subordinated debt to stressed MSMEs.
  • INR 50,000 crore equity infusion for MSMEs through Fund of Funds.
  • A revised definition of MSMEs to allow higher investment without change of status.
  • Global tenders to be disallowed in the Government procurement tenders up to INR 200 crores.
  • MSME receivables from Gov and CPSEs to be released in 45 days
  • Promotion of e-market linkage for MSMEs to act as a replacement for trade fairs and exhibitions.
  • Provide Interest subvention of 2% in Mudra Shishu loans for prompt payees for a period of 12 months. Estimated costs to be INR 1,500 crore.
  • The minimum threshold to initiate insolvency proceedings raised to INR 1 crore from INR 1 lakh.

Economically Weaker Section

  • Ex- Gratia payment of INR 1,000 in two instalments to poor senior citizens, widows and divyangs.
  • Women Jan Dhan account holders to get 500 per month for 3 months.
  • Beneficiaries of the Ujjwala Yojna to get free LPG cylinders from 3 months.
  • Food assistance through the benefit of 5 kg wheat or rice per person and 1 kg pulse for each household for 3 months.
  • Special scheme for street vendors to facilitate ease of credit through initial working capital of up to INR 10,000 per vendor.

Migrant Workers

  • State Governments utilising State Disaster Response Fund to set up a shelter for migrants and providing them food and water.
  • The Central Government released INR 11,000 crore of its contribution in advance to all States to augment funds in their SDRF.
  • Three meals a day provided for the residents of Shelters for Urban Homeless (SUH) during the lockdown.
  • Migrants who are neither NFSA or State Card beneficiaries in the state they are stationed to be provided 5 kg of grains per person and 1 kg Chana per family per month for two months. The estimated cost to be INR 3,500 crores.
  • Technology Systems to be used enabling Migrants to access Public Distribution System (Ration) from any Fair Price Shop in India by March 2021.
  • The government to launch a scheme under PMAY for migrant labour to provide accommodation at affordable rent through Affordable Rental Housing Complexes (ARHC).


  • For workers under MNREGA, increase of daily wage from INR 182/day to INR 202/day.
  • 14.62 crore person-days of work generated till 13th May 2020, with actual expenditure being INR 10,000 crores.
  • Plans worth INR 6,000 crores to be approved by the Compensatory Afforestation Management & Planning Authority (CAMPA) to create job opportunities in urban, semi-urban and rural areas.
  • The government to allocate an additional INR 40,000 crore under MGNREGS. This will help generate nearly 300 crore person-days in total.

Working Population

  • The EPF contribution of both employer and employee (24 per cent in total) would be paid by the government for March-May, later extended till August.
  • Amendment to the regulation of EPF so that workers can draw up to 75 per cent non-refundable advance from their provident fund account or three months salary, whichever is lower.
  • Building and Construction Workers Welfare Fund allowed being used to provide relief to workers
  • Statutory PF contribution of both employer and employee will be reduced
    to 10% each from the existing 12% for 3 months.

Middle Income Group

  • Credit Linked Subsidy Scheme for Middle Income Group
    (Annual Income: Rs 6–18 lakhs) extended up to March 2021. This will lead to an investment of INR 70,000 crores in the housing sector.


  • Reduction of TDS and TCS by 25% till 31st March 2021.
  • All pending refunds to charitable trusts and noncorporate businesses & professions and Co-operatives to be issued immediately.
  • Due date of all income-tax return for FY 2019-20 extended from 31st July 2020 & 31st October 2020 to 30th November 2020 and Tax audit from 30th September 2020 to 31st October 2020.
  • Period of Vivad se Vishwas Scheme for making payment without additional amount extended to 31st December 2020.


  • Medical insurance of INR 50 lakh per person for paramedics, ASHA workers and doctors.
  • Public expenditure on health to be increased along with increased investment in grass-root health institutions.

Power Distribution Companies

  • PFC/REC to infuse liquidity of Rs 90,000 cr to DISCOMs against receivables
  • Power Departments / Utilities in Union Territories will be privatised.


  • Extension of up to six months to be provided by all Central Agencies without any additional cost to the contractor.

Real Estate

  • Treat COVID-19 as an event of ‘Force Majeure’ under RERA and extend the registration and completion date suo-moto by 6 months for all registered projects expiring on or after 25th March 2020.

Coal Sector

  • Nearly 50 blocks to be offered immediately.
  • Partially explored blocks to be auctioned, with the participation of the private sector.
  • Infrastructure development of INR 50,000 crores.
  • Concessions in commercial terms given to CIL’s consumers worth INR 5000 crore offered.

Mineral Sector

  • 500 mining blocks to be offered through an open and transparent auction process
  • Remove the distinction between captive and noncaptive mines to allow the transfer of mining leases and sale of surplus unused minerals

Defence Sector

  • For Self-Reliance in Defence Production, a list of weapons/platforms for a ban on
    import with year-wise timelines to be notified, along with Indigenisation of imported spares and Separate budget provisioning for domestic capital procurement.
  • FDI limit in the defence manufacturing under the automatic route to be raised from 49% to 74%

Aviation Sector

  • Restrictions on the utilisation of the Indian Air Space to be eased so that civilian flying becomes more efficient. This will bring a total benefit of about INR 1,000 crores per year for the aviation sector.
  • The AAI has awarded 3 airports out of 6 bid for Operation and Maintenance on Public-Private Partnership (PPP) basis. 6 more airports identified for 2nd round. Additional Investment by private players in 12 airports in 1st and 2nd rounds expected around Rs. 13,000 crores.
  • Aircraft component repairs and airframe maintenance to increase from INR 800 crores to INR 2,000 crores in three years.

Social Infrastructure

  • The government to enhance the quantum of Viability Gap Funding up to 30% each of Total Project Cost as VGF by Centre and State/Statutory Bodies. The total outlay is INR 8,100 crores.

Space Activities

  • Promoting private sector participation by providing level playing field for private companies in satellites, launches and space-based services. The private sector will be allowed to use ISRO facilities and other relevant assets to improve their capacities,


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