20 lakh karod relief package announced, but where will the money come from?
Prime Minister Narendra Modi has announced a package of 20 lakh karod rupees. There was a demand for such a huge package to deal with Kovid-19 and strengthen the country’s economic situation. However, there is also the question that how will 20 lakh karod rupees be used? Some understand this as how it can be accomplished.
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Actual package is 13 lakh karod rupees
However, the way people have received the money in foreign countries, it is not going to happen in India. Here the government will not give money in hand. The government will reform labor, land, law and support liquidity. The actual package is 13 lakh karod rupees. First of all, understand that the package that has been announced has been done by combining all the packages of 20 lakh karod ago. The RBI has so far given a package of Rs 5 lakh karod. 1.70 lakh karod has been given by the government. In total, it was Rs 6.70 lakh karod. Now if we remove 6.70 out of 20 lakh karod, then the government can give a package of 13 lakh karod
20 lakh karod will come from where?
The government only has to calculate Rs 13 lakh karod. First of all, the tax will be withdrawn from LTCG. Then dividend distribution tax will be added to corporate tax. 6 months moratorium can be given to GST, which will give 6 lakh karod. The rest of the money that the government wants will be met by its lending program.
How much will the government borrow?
The government has increased the borrowing for the current fiscal due to the Kovid-19 crisis. Now the government has decided to borrow Rs 12 lakh karod for FY 2021. This amount will be 4.20 lakh karod more than the target of 7.80 lakh karod rupees borrowing already set in the budget.
Why is the government borrowing heavily from the market this year?
Kovid-19 attack has spoiled all the budget figures and estimates. The government is struggling with shortage of money. The entire economy of the country has stalled since March 24 due to the lockdown. The tax collection has been badly affected. The government’s earnings have come down drastically.
Government not relieved from GST collection too?
Business activities in the country have come to a standstill. The government’s GST earnings came down to Rs 28000 karod in March. GST was around 1 lakh karod rupees before March.
Could the government make a separate budgetary announcement?
For this, the government could make a separate budgetary announcement only when the government brought the Kovid-19 special budget.
Can the government increase its target to borrow more?
Actually, the package announced by the government of 20 lakh karod was not expected by anyone. The lending target the government had set was to bridge the revenue deficit. But when the package of 20 lakh karod has been released, the government can increase the lending further. Or it can get something by taxing rich people.