New Delhi, May 13: Senior Congress leader P Chidambaram said the financial package, details of which were announced by Union Finance Minister Nirmala Sitharaman today, has nothing for poor and migrant workers. Describing the financial package, as "cruel blow" to poor and migrants, P Chidambaram said no measures were announced to give cash in hands of poor. Nirmala Sitharaman Speech: Full Text And Details of Atmanirbhar Bharat Financial Package Worth Rs 20 Lakh Crore in PDF.
"There is nothing in what Finance Minister said today for the lakhs of poor, hungry and devastated migrant workers walked and many thousands are still walking back to their home states. It's a cruel blow to those who toil every day," Chidambara, a former Union Finance Minister, said. "There is also nothing by way of cash transfer to the bottom half of the population - 13 crore families who have been pushed into destitution," he added. TDS, TCS Slashed by 25% on Non-Salary Payments, Reduced Taxes to Give Relief Worth Rs 50,000 Crore.
P Chidambaram Reacts to Economic Package Announced by Nirmala Sitharaman:
There is also nothing by way of cash transfer to the bottom half of the population (13 crore families) who have been pushed into destitution. Only yesterday, Prof Thomas Pikketty pleaded for cash transfers to the poor: @PChidambaram_IN #JumlaPackage
— Congress (@INCIndia) May 13, 2020
The Congress party said the focus of the economic package is "debt creation" and not "demand creation". Congress spokesperson Jaiveer Shergill in a statement, said, "Rs 20 Lakh Cr Package announced by FM is a 'Loans Marketing Brochure" rather than a "Relief Oriented Rescue Plan". "Instead of moratorium-minimum 12 months interest on loan /EMI should have been waived otherwise it amounts to paying interest on interest," he added.
Congress's Jaiveer Shergill Says Financial Package Focusing on 'Debt Creation'
₹20Lac Cr Package announced by FM is a “Loans Marketing Brochure” rather than a “Relief Oriented Rescue Plan”; Focus of package is “debt creation” & not “demand creation”-clearing of receivables & tax refunds is not stimulus-Govt misleading by Repackaging loans & dues as Relief
— Jaiveer Shergill (@JaiveerShergill) May 13, 2020
FM has announced collateral free ₹3Lac Crore Loan for MSME with 12 month moratorium:
1. Instead of moratorium-minimum 12 months interest on loan /EMI should have been waived otherwise it amounts to paying interest on interest
2. Problem in market is lack of demand not loan
— Jaiveer Shergill (@JaiveerShergill) May 13, 2020
Among other measures for MSMEs, Nirmala Sitharaman also announced a collateral-free automatic loan for businesses including MSMEs up to Rs 3 lakh crore. Under the measure, borrowers with up to Rs 25 crore outstanding and Rs 100 crore turnover would be eligible for the special collateral-free loan. Further, the government has also done away with the distinction of services and manufacturing MSME.
As per the new changes, businesses with investment of less than Rs 1 crore and turnover of Rs 5 crore would be classified as micro enterprises. Under the existing criteria, a company with investment of less than Rs 25 lakh in the manufacturing sector and less than Rs 10 lakh in the services sector were considered micro-enterprises. The measure is a part of the Rs 20 lakh crore economic package announced by Prime Minister Narendra Modi on Tuesday evening.
(The above story first appeared on LatestLY on May 13, 2020 06:47 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).