Additional Rs 40,000 crore allocated for MGNREGA: FM Sitharaman

New Delhi (NVI): Union Finance Minister Nirmala Sitharaman today said that the Centre will now allocate an additional Rs 40,000 crore to MGNREGA to provide a fillip to employment and the move will help generate nearly 300 crore person days in total.

The earlier budget estimate for the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) was Rs 61,000 crore.

The Finance Minister today gave details of the fifth and last tranche of funds under the Rs 20 lakh crore economic package that was announced by Prime Minister Narendra Modi on May 12. During his address to the nation, the PM had announced the stimulus to tide over Covid-19 crisis.

The FM further said that the borrowing limit of states has been raised from 3 per cent of gross state domestic product (GSDP) to 5 per cent in 2020-21. This will make available an extra of Rs 4.28 lakh crore.

The Rs 20 lakh cr economic stimulus includes Rs 8.01 lakh crore of liquidity measures by RBI and Rs 1.92 lakh crore package in March, she added.

The finance minister also summarised the funds allocated under all 5 tranches, totalling over Rs 20 lakh crores. The overall stimulus provided by Atmanirbhar Bharat Package includes Rs 5.94 lakh crore in 1st tranche, Rs 3.10 lakh crore in 2nd; Rs 1.50 lakh crore in 3rd and Rs 48,100 crore in 4th and 5th tranches.

During the press conference yesterday, Sitharaman said that eight sectors will undergo structural reforms including coal, minerals, defence production, airspace management and airports, MRO (Maintenance, Repair, and Overhaul), power distribution companies in Union territories, space and atomic energy.