Modi's Rs 20 Lakh Crore Package Will Likely Have Fiscal Cost of Less Than Rs 2.5 Lakh Crore

While economists and experts have differing estimates, direct fiscal stimulus from the Centre will only be a little over 1% of India's GDP.

Finance minister Nirmala Sitharaman announces the fifth tranche of the economic stimulus package at the National media Centre, New Delhi, May 17, 2020. Photo: PTI/Atul Yadav

ECONOMY

11 HOURS AGO

New Delhi: The fine print of Prime Minister Narendra Modi’s Atmanirbhar Bharat Abhiyan economic package, India’s economic response to the COVID-19 disaster, was made clear in its entirety on Sunday morning when finance minister Nirmala Sitharaman announced details of the final part of the plan.

The overall package consists of three primary components – a set of measures taken by the government before Modi’s speech on May 12, the Reserve Bank of India’s liquidity measures over the last two months and the five tranches announced by Nirmala Sitharaman over the last few days.

By the government’s calculations, as shown by the table below, this comes out to Rs 20.97 lakh crore.

Economic Package Component	Announced Amount (Rs crore)
Earlier Stimulus Measures	1,92,800
RBI's Measures (Actual)	8,01,603
Total	20,97,053
Tranche 1 (MSME + NBFC + Power)	5,94,550
Tranche 2 (Migrants, KCC, Nabard, MUDRA etc)	3,10,000
Tranche 3 (Agriculture)	1,50,000
Tranche 4 + 5	48,100

  

Measures Taken Before Modi's May 12 Speech

Steps Taken by Government	Announced Amount (Rs crore)
Revenue Lost to Tax Concessions since March 22, 2020	7,800
Pradhan Mantri Garib Kalyan Package	1,70,000
PM’s announcement for Health sector	15,000
Total	1,92,800