MGNREGA budget raised to Rs 1 lakh crore from budget estimate of Rs 61,000 crore.
Good.
Good.
---Debt related to COVID-19 should be excluded from the category of default.
-- No fresh insolvency proceedings for 1 year.
-- For MSMEs, special insolvency framework to be notified.
-- Minimum threshold for insolvency raised to Rs 1 crore.
-- No fresh insolvency proceedings for 1 year.
-- For MSMEs, special insolvency framework to be notified.
-- Minimum threshold for insolvency raised to Rs 1 crore.
New PSU policy:
-- All sectors will be open to private sector.
-- In notified strategic sectors, at least one PSU and upto a maximum of four PSUs will be allowed.
-- PSUs to be merged where too many exist.
-- All sectors will be open to private sector.
-- In notified strategic sectors, at least one PSU and upto a maximum of four PSUs will be allowed.
-- PSUs to be merged where too many exist.
Big One:
-- States will be allowed to borrow 5 percent of GSDP instead of 3 percent of GSDP
So along with the Rs 12 lakh crore of central borrowing, the markets will need to absorb roughly Rs 10 lakh crore (additional Rs 4.28 lakh crore) from the states.
-- States will be allowed to borrow 5 percent of GSDP instead of 3 percent of GSDP
So along with the Rs 12 lakh crore of central borrowing, the markets will need to absorb roughly Rs 10 lakh crore (additional Rs 4.28 lakh crore) from the states.
BUT (and a BUT that states will be up in arms about):
- 0.5 percent increase is unconditional.
- 1 percentage point increase in four tranches linked to reforms.
- Last 0.5 percentage points to be released on meeting targets in at least three areas of reform.
- 0.5 percent increase is unconditional.
- 1 percentage point increase in four tranches linked to reforms.
- Last 0.5 percentage points to be released on meeting targets in at least three areas of reform.
