Govt announces Rs 29.88 Lakh Crore stimulus package to revive Covid-hit Indian economy
New Delhi/IBNS: In a bid to ward off the gloom surrounding the Indian economy hit by Covid-19 restrictions, the government today announced a slew of measures, including tax relief for home buyers as well as the real estate developers.
The government and Reserve Bank of India announced stimulus packages totalling to Rs 29,87,641 crore or 15 per cent or the Gross Domestic Product of India to revive the sagging economy which has suffered due to the COVID-19 restrictions, Finance Minister Nirmala Sitharaman said while announcing stimulus measures under Atmanirbhar Bharat Abhiyaan 3.0.
Giving the break up of the stimulus package, Sitharaman said Rs 1,92,800 crore relief was provided for Pradhan Mantri Garib Kalyan Package, Rs 11,02,650 crore was allocated under Atmanirbhar Bharat Abhiyaan 1.0, Rs 82,911 crore was given under Pradhan Mantri Garib Kalyan Package.
Under Pradhan Mantri Garib Kalyan Package Anna Yojana - five months of extension from July-November, the amount of Rs 82,911 crore, Rs 73,000 crore was allocated under Atmanirbhar Bharat Abhiyaan 2.0 and Rs 2,65,080 crore was given to Atmanirbhar Bharat Abhiyaan 3.0 totaling to Rs 17.16 lakh crore.
According to the Finance Ministry's presentation, the Reserve Bank's stimulus package amounts to Rs 12,71,200 crore.
As per the measures announced for the housing and real estate sector, the differential between the circle rate and the agreement value has been raised from 10 per cent to 20 per cent for primary residential real estate sales.
This offer will be applicable till June, 2021.
In order to restore construction of the pending real estate projects, the finance minister announced a Rs18,000-crore additional outlay for the urban housing scheme.
Sitharaman said: " Rs 18,000 crore would be provided over and above the Budget Estimates for 2020-21 for the Prime Minister Awas Yojana (Urban) through additional allocation and extra budgetary resources," Nirmala Sitharman announced. This will be over and above Rs 8,000 crore already provided this year. The move will help start work on 12 lakh houses as well as complete 18 lakh houses."
There would be relaxation in Earnest Money Deposit (EMO) and performance security requirements for government tenders, Sitharaman further added.