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The government of India is preparing to bring an economic package of $ 18 billion (about Rs.13.64 trillion) and may announce relief to millions of employees of the country's industries and unorganized sector from the lockdown due to Coronavirus. Relief may be announced soon and could be transferred directly in Jan Dhan Accounts as the report says. Based on the report and according to industry sources, the Modi government is preparing to provide relief amounts directly into the crores of Jan Dhan accounts. Govt is also thinking to reduce GST on essential items like Hand Sanitizer. At the same time, companies can also be given the benefit of deferred Corporate Taxes, so that people do not lose their jobs due to the economic loss to the companies.
Modi Govt $18b as a relief fund can help as a financial package which may give relief to the stock market also, which recently saw its biggest fall so far in the past history.
Sources have said that the Modi government and regulatory body SEBI are considering temporarily removing the tax on long-term capital gains (LTCG) and share buybacks. The government’s new move can provide a big relief to investors in the stock market also. Similarly, removal of tax on LTCG will attract more investors in the stock market, the report said.
The report added that this economic package of the Modi Government may bring relief to the middle-class people through Jan Dhan Accounts. So that the consumption of goods in the market is encouraged. People in this segment can also get relief in paying EMIs from the government. Since the EMI payment of such people may be postponed for a few months. According to an industry expert working for the government and the private sector, there can be a huge cut in savings interest rates and the same reduction can also be in the interest rates of loans.
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The relief package can be announced by the end of this week and this assistance amount can be directly added to the account of 10 crore people. This relief will be given to the poor class and those who are most affected by the lockdown through Jan Dhan Accounts.
The report said not only pouring money directly into accounts, but Govt is considering other options seriously. Apart from this, GST and reduction in loan interest rates are also being seriously considered.
According to sources, the Modi Government has not yet taken any final decision, but discussions are going on between the Prime Minister's Office, the Finance Ministry and the Reserve Bank are discussing the matter and relief package is in consideration.