Government In Favor Of Relief Measures, Not Cash

Government in favor of relief measures, not cash in the next relief package, know what is the reason for this.

The government may soon announce the next relief package to bring the economy back on track, but under this package, the government is not in favor of giving cash to the account.

People are preferring to keep cash in the bank instead of spending it on giving cash to the account. Whereas the aim of the government is to spend that money so that consumption in the economy increases and new demand is created.

Therefore, such a scheme is being included in the next package under which there is no scope for savings.

Soon after the lockdown started, the government announced a relief package under which Rs 500–500 per month was given to the Mahila Jan Dhan account.

But the data on deposits in Jan Dhan accounts shows that people focused more on depositing money than spending.

According to SBI ECORAP data, a large number of accounts were opened in the Mahila Jan Dhan account after the government announced to give 500-500 rupees.

As of October 14 this year, the number of Jan Dhan accounts was 41.05 crore and these accounts had deposits of Rs 1,30,741 crore.

From April 1 to October 14 this year, 3 crore new accounts were opened, which is 60 percent more than the same period last year.

According to the SBI ECORAP report, from April to mid-October this year, the deposits of Jan Dhan accounts increased by 11,060 crores as compared to 7857 crores in the deposits of Jan Dhan accounts in the same period last year.

According to Finance Ministry sources, now the unemployed workers or anyone else will not be helped by paying directly to their account, given the amount deposited in the Jan Dhan account.

The government will include such schemes or those measures in the package under which people spend more and more and the economy can catch the pace. The next relief package is expected to be announced before the new year.

Big companies will also be able to avail of loans under the MSME scheme

Under the Emergency Credit Line Guarantee Scheme (ECLGS), large companies will now be able to take advantage of the Rs 3 lakh crore loan scheme for MSMEs.

According to highly placed sources in the Finance Ministry, the Financial Services Department may soon issue notifications in this matter.

The loan period under ECLGS expired on October 31, which has been extended till November 30. Till 31 October, loans worth about Rs 2 lakh crore were approved and there is scope to approve Rs 1 lakh crore.

Industrial organizations had also requested the government to involve large companies in this scheme.

The government is also understanding that if small entrepreneurs were taking a lot of interest in the loan, by October 31, the loan of 3 lakh crore would have been approved.