Centre allocates additional 40 thousand crore rupees under MGNREGA

• Union Finance Minister announced the 5th and last Tranche of measures towards Government Reforms and Enablers under Aatma Nirbhar Bharat Abhiyaan.

Measures announced:

• The Government will allocate an additional Rs 40,000 crore under MGNREGS to provide employment boost.

• There will be Decriminalisation of Companies Act violations involving minor technical and procedural defaults such as shortcomings in CSR reporting, delay in holding of AGM etc. to de-clog the criminal courts and NCLT.

• Public Expenditure on Health will be increased by investing in grass-root health institutions and ramping up Health and Wellness Centres in rural and urban areas. Infectious Diseases Hospital Blocks to be setup in all districts.

• Government will announce a new Public Sector Enterprise Policy whereby List of strategic sectors requiring presence of PSEs in the public interest will be notified. In strategic sectors, at least one enterprise will remain in the public sector but the private sector will also be allowed. In other sectors, PSEs will be privatized.

• Centre has decided to increase the borrowing limits of States from 3% to 5% for 2020-21 only. This will give States extra resources of Rs. 4.28 lakh crore.

Technology Driven Education with Equity post-COVID:

• PM eVIDYA, a programme for multi-mode access to digital/online education to be launched immediately.

• Manodarpan, an initiative for psycho-social support for students, teachers and families for mental health and emotional well-being to be launched immediately as well.

• National Foundational Literacy and Numeracy Mission for ensuring that every child attains Learning levels and outcomes in grade 5 by 2025 will be launched by December 2020.

Further enhancement of Ease of Doing Business through IBC related measures:

• Minimum threshold to initiate insolvency proceedings has been raised to Rs. 1 crore (from Rs. 1 lakh, which largely insulates MSMEs). Suspension of fresh initiation of insolvency proceedings up to one year, depending upon the pandemic situation.

• Central Government to be empowered to exclude COVID 19 related debt from the definition of “default” under the Code for the purpose of triggering insolvency proceedings.

Ease of Doing Business for Corporates:

• Direct listing of securities by Indian public companies in permissible foreign jurisdictions.

• Private companies which list NCDs on stock exchanges not to be regarded as listed companies. Power to create additional/ specialized benches to be granted for NCLAT.


Mains Paper 3: Economy

Prelims level: MGNREGA

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