Govt. Of India 20 Lakh Crore Package

On 12th May 2020, our honorable PM Mr. Narendra Modi releases a 20 lakh crore economic package to help the people in these times of economic recession. The details of this package were released in 5 parts in a duration of 5 days by our Finance Minister in an official press conference.

Is this package is actually worth 20 lakh crore rupees? what are its benefits?

First of all, before understanding this we need to understand two economic terms-  fiscal policy and monetary policy. Fiscal policies are those policies which are made by the government and monetary are those that are made by RBI. This package doesn't come under the government package or fiscal package because in this package, 8 lakh crore out of 20 lakh crore is the reserve of RBI. The money in the reserves of RBI can't be used in the economy. RBI uses its reserves by lowering its interest rates so that the banks that take loans from the RBI could avail loans at lesser interest rates so that they would be able to give loans to the companies and people at a lower interest rate. This package is made by combining the fiscal package and monetary package. The government had already announced around 2 lakh crore in the previous package but re-counted it in this 20 lakh crore package and there are several other things which the government has already announced. 

*Government Loan Facilities.

*Government has decided to give 3 lakh crore rupees collateral-free loans to micro, small, and medium enterprises.
*They will also give a loan of 90,000 crores to power distribution companies and it is expected that the power supply companies might give benefits to their consumers.
*A concessional credit of 2 lakh crore rupees would be given to our farmers. (concessional credit means loan given on lower interest rate.).
*5000 crore rupees loan facility has been provided for the street vendors.

*Food Grains And Employment For Migrant Workers.

*A supply of free food grains will be provided for the migrant workers for the next two months and the government said that this will benefit 8 crores, migrant workers.
*The government has also said that the migrant workers would be given employment under MNREGA.
*One nation, one ration card would also implement on 31st May 2021.