One Nation One Digital Platform, Capacity Building, Health Sector & Miscellaneous Schemes: Finale of Series “Honorable Union FM Announcements”
In the final tranche, the government on 17th May 2020 announced Governance Reforms and Enablers for relaxing provisions to comply in the present pandemic situation following PM Modi’s remarks “As a nation today we are standing at the very crucial junction and such a big disaster for India it has brought a crisis and an opportunity as well”.
In this write-up, we shall be focusing on certain reforms in direction to make a self -reliant India by Educating, Protecting, and Assisting. In earlier tranches, 4 ‘L’s all have been emphasized.
Recalling the Reforms Introduced so far through Series
For Maintaining Standard of Living:
- Providing Ration to consumers through States/UTs for approx 80,000 crore beneficiaries.
- Provision of Free Gas Cylinders for Rs.681 Lakhs
- Transferring amount to holders under the Direct Benefit Transfer Scheme (DBT) for Rs. 8,429 crore.
- Transferring to the account of 819 crore beneficiaries under PM Kisan Yojna totaling amount Rs.16,394 Lakhs.
- Allocation of the amount to National Social Assistant Scheme for differently-abled and old aged 281 Lakhs beneficiaries amounting to Rs.2,807 Lakhs out Rs.3,007 Lakhs.
- Building Construction Fund 220 Lakhs Rs. 3,900 Lakhs
- Introduction of Shramik Railways, accessible to food, the contribution of 85% to the provision of all facilities associated with such facility.
- Withdrawal from EPFO Fund by 12 Lakhs members of Rs.3,360 Lakhs in the last 2 months.
- Loan Term Repayment Moratorium extension.
Health Sector Reforms: Fact Check & Initiatives
- Insurance cover of Rs.50 lakhs per person for health professionals under Pradhan Mantri Garib Kalyan Yojana.
- Increased investments in Public Health, includes Expenditure in Grass Root Health Institutions.
- Provision of Infectious Diseases Hospital Blocks in all districts.
- Provision of Strengthening of lab network and surveillance.
- Provision of Integrated Public Health Labs in all districts & block level to ensure:
- The Labs & Public Health Unit manages pandemics.
- Encouraging Research under the National Institutional Platform for One Health by ICMR.
- The facilitation of the National Digital Health Mission for enabling:
- Implementation of National Digital Health Blueprint.
- Easy Traceability of each individual.
Information & communication Technology (ICT) Reforms:
- Immediate Roll out of e-Sanjeevani Tele-Consultation Services.
- Capacity Building through Virtual learning modules – iGOT
- “Arogya Setu” Application enabling Self-assessment and contact tracing.
Reforms under Ease of Doing Business: Corporate Laws:
The roll-out of measures has steadily improved the position of Doing business Report to 63rd Position as of 2019.
- Under Corporate Law: The EODB Measures includes:
- Granting of permits and clearance;
- Self Certification;
- Third-Party Certification,
- Decriminalization of Offences under Company Law includes:
- Shifting to In-house Adjudication Mechanism (IAM).
- De-clogging of criminal courts and NCLT
- Decriminalization of offenses involving criminal and technical defaults
- Application for Company incorporation along with different services through Integrated Web-Based Incorporation Form to different ministries includes:
- Company Identification Number,
- ESIC
- EPFO
- GST
- TAN & PAN
- Opening of Bank Account amongst other services.
- Creation of Independent Directors Database (to ensure easy access and record of such IDs with regular updation).
- Withdrawal of more than 14000 prosecutions under Companies Act, 2013 reviving the companies and condoning the delays.
- Rationalization of Related Party Transactions (RPTs) related provisions.
- Reduction of timely compliance burden under various sections of Companies Act.
- Under IBC:
- Increase of Minimum threshold to initiate insolvency proceedings raised to Rs.1 crore.
- Introduction of Special insolvency resolution framework for MSMEs under Section 240A of the Code to be notified soon.
- Provision of suspension of fresh initiation of insolvency proceedings up to one year depending upon the pandemic situation.
- Revision of the definition of “default” under the Code for the purpose of triggering insolvency proceedings.
- Fact Check:
- 44% recovery from the admitted claims to Rs.4.13Lakh crores.
- The total realizable amount is Rs.1.84 Lakh crores.
- In total, 13566 cases have been withdrawn from IBC amounting to Rs.5.16 Lakh crore till 29th February 2020.
- Other Major Reforms:
- Provisions made for Direct listing of securities by Indian public companies in permissible foreign jurisdictions.
- Facilitation of listing of Non-Convertible Debentures (NCDs) on stock exchanges by private companies not to be regarded as listed companies.
- Inclusion of Producer Companies provisions of Companies Act, 1956 in Companies Act, 2013.
- Power to create additional/ specialized benches for NCLAT.
- Lowering of penalties for all defaults for the following companies:
- Small Companies,
- One Person Companies,
- Producer Companies &
- Start-Ups.
- Future Outlook:
- Easy Registration of property
- Faster disposal of commercial property disputes,
- The simpler Tax regime for attracting investments and commercialization.
Educational Reforms: Technology Driven Educational System
- Provision of SWAYAM PRABHA DTH channels to ensure:
- Support and reach children who do not access to the internet.
- Provision of live telecast of sessions with children with experts from home through skype.
- Being DTH the moderator of such enhance the air educational content for ease of access.
- Share air time with DTH operators i.e., 4 hours daily.
- Remarkable DIKHA channels have 61 crores hits from 24th March to date.
- Provision of Addition of Books for students till class 12 one– Paathshaala.
- Provision of PM eVIDYA for multi-mode access to digital/online education to be launched immediately;
- Such programme is comprising of:
- e-content and QR coded based content;
- Provision of Energized Textbooks for all grades promoting one nation, one digital platform;
- One earmarked TV channel per class from 1 to 12 (one class, one channel;
- Facility of extensive use of Radio, Community Radio and Podcasts;
- Special e-content for visually and hearing impaired is facilitated;
- Top 100 universities will be permitted to automatically start online courses by 30th May 2020.
- Manodarpan is introduced immediately with an aim as follows:
- For providing psychosocial support of students, teachers and families for mental health and
- For providing emotional well being.
- Features of the Initiative:
- Introduction of new national curriculum and pedagogical framework for school, early childhood and teachers will be launched;
- Integration with global and 21st-century skill requirements.
- National Foundational Literacy and Numeracy Mission: The initiative shall be launched by December 2020 for ensuring:
- that every child attains Learning levels and outcomes in grade 5 by 2025.
- Better understanding of children;
- Nourishing the children at their tender age to maintain ethics.
Reforms in Public Sector: Public Sector Enterprise Policy
- Introduction of new Public Sector Enterprise Policy will leverage all the strengths and remove all the shortcomings in the promotion of the PSEs and will act as a Pivot Role in the growth of the economy.
- Such PSE Policy will incorporate:
- Enlist all the strategic sectors requiring the presence of PSEs in the public interest.
- Privatization of PSEs with the provision of one in the public sector in strategic sectors.
- Total Privatization in other sectors of the PSEs based on feasibility and other factors.
- Such PSE Policy will be notified with the aim of :
- Minimizing wasteful administrative costs,
- A number of enterprises in strategic sectors will ordinarily be definite.
- Reduction of liabilities of government ill-managed enterprises.
- Enhancement of Professional management to become a crucial assets of government.
- Being a Government being a moderator guides in complying with the regulatory and for standard enrichment.
Extended Support to State Governments
- Transferring of earnings from taxes worth Rs.46,038 crores in April despite budget losses to States.
- Revenue Deficit Grants 12,390 crores given on time to States in the month of April and May.
- Advance Relief under State Disaster Relief Fund (SDRF) 11,092 crores in April.
- Release from Health Ministry to States 4,113 crores for direct anti-COVID activities.
- New Borrowing Ceiling Limit is 3% of Gross GDP for FY 2020-21.
- Acceding of additional 3% special borrowings upon states request for FY 20-21 only giving them Rs.4.28 Lakhs additional resources.
Extension of Measures by Reserve Bank of India
- Increased Ways & Means Advance Limit by 60% for states.
- For calculation of days in continuous overdraft from 14 to 21 days.
- Increase in quarter overdraft period from 32 to 50 days.
Analysis of Expenditures & Revenues Under Stimulus Package:
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ITEM (Rs.Cr.) Part 1 5,94,550 Part 2 3,10,000 Part 3 1,50,000 Parts 4 and 5 48,100 Sub-Total 11,02,650 Earlier Measures 1,92,800 RBI Measures (Actual) 8,01,603 Sub Total 9,94,403 GRAND TOTAL 20,97,053
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To conclude the strings of announcements made by Union Finance Minister based on PM Narendra Modi’s Government enables seeking opportunities while recognizing and facing the challenges alongside improving 4 ‘L’s with sectoral reforms and assistance brings strength back to India.
It is worth noting that this stimulus package includes growth for each sector both at the domestic level as well at the international level to make India “Vishwa Guru”.
