Modi announces sops for poor
Annapurna Singh, New Delhi: Jan 1, 2017, DHNS
Admitting that people have suffered a great deal due to demonetisation in the past 50 days, Prime Minister Narendra Modi on Saturday announced a slew of relief for poor, senior citizens and women and promised to bear all interest on loans to farmers for 60 days.
In his New Year’s Eve address, the prime minister also handed out tax concessions to small traders who have suffered more due to cash crunch induced by the scrapping of 86% of India’s total currency on November 8 last year.
Modi also sent a terse warning to those who had tried to hide their incomes despite the government giving them ample opportunity to declare their assets.“The law will take its own course, with its full force,” Modi said adding that only 24 lakh people have admitted that they earn more than Rs10 lakh a year.
In announcements that almost sounded like a mini-Budget, he offered interest subsidy on home loans for rural and urban poor. Now, home loans for poor and middle class up to Rs 9 lakh will get a 4% exemption on interest and up to Rs 12 lakh will get 3% exemption in urban areas. Another 3% interest waiver will be offered on loans up to Rs 2 lakh for construction of houses in rural India under Prime Minister Awas Yojana.
For senior citizens, he handed out an assured return on their fixed deposits, irrespective of the banks cutting the deposit rates. “We have decided that up to Rs 7.5 lakh in fixed deposits for 10 years will get them an interest of 8%,” Modi said in his televised address to the nation, the second in a space of two months.
With an eye on elections in Uttar Pradesh and four other states, he said the government will bear the interest for 60 days on crop loans taken by farmers from district cooperative banks and primary societies for sowing operations this rabi season.
In the same vein, he also announced that three crore Kisan Credit Cards will be converted into RuPay Card within three months to help farmers purchase various inputs anywhere. Nabard will be given an additional Rs 20,000 crore to finance district cooperative banks and societies. This will be over and above Rs 21,000 crore announced earlier.
Women who undergo institutional delivery will get an assistance of Rs 6,000, he said adding that the move will check maternal mortality rate.
Announcing doubling of credit guarantee to Rs two crore to small-scale and medium enterprises, which play a significant role in increasing job opportunities, he asked the banks to be sensitive towards the needs of the poor and the middle class and restore normalcy as soon as possible.
Finance Minister Arun Jaitley said the prime minister’s announcements will enhance economic activity.
DH News Service
In his New Year’s Eve address, the prime minister also handed out tax concessions to small traders who have suffered more due to cash crunch induced by the scrapping of 86% of India’s total currency on November 8 last year.
Modi also sent a terse warning to those who had tried to hide their incomes despite the government giving them ample opportunity to declare their assets.“The law will take its own course, with its full force,” Modi said adding that only 24 lakh people have admitted that they earn more than Rs10 lakh a year.
In announcements that almost sounded like a mini-Budget, he offered interest subsidy on home loans for rural and urban poor. Now, home loans for poor and middle class up to Rs 9 lakh will get a 4% exemption on interest and up to Rs 12 lakh will get 3% exemption in urban areas. Another 3% interest waiver will be offered on loans up to Rs 2 lakh for construction of houses in rural India under Prime Minister Awas Yojana.
For senior citizens, he handed out an assured return on their fixed deposits, irrespective of the banks cutting the deposit rates. “We have decided that up to Rs 7.5 lakh in fixed deposits for 10 years will get them an interest of 8%,” Modi said in his televised address to the nation, the second in a space of two months.
With an eye on elections in Uttar Pradesh and four other states, he said the government will bear the interest for 60 days on crop loans taken by farmers from district cooperative banks and primary societies for sowing operations this rabi season.
In the same vein, he also announced that three crore Kisan Credit Cards will be converted into RuPay Card within three months to help farmers purchase various inputs anywhere. Nabard will be given an additional Rs 20,000 crore to finance district cooperative banks and societies. This will be over and above Rs 21,000 crore announced earlier.
Women who undergo institutional delivery will get an assistance of Rs 6,000, he said adding that the move will check maternal mortality rate.
Announcing doubling of credit guarantee to Rs two crore to small-scale and medium enterprises, which play a significant role in increasing job opportunities, he asked the banks to be sensitive towards the needs of the poor and the middle class and restore normalcy as soon as possible.
Finance Minister Arun Jaitley said the prime minister’s announcements will enhance economic activity.
DH News Service
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