Due to coronavirus, the Indian economy is facing an unprecedented slowdown. In order to revive the economy, Finance Ministry stopped the launch of any new scheme except PM Gareeb Kalyan Package, Aatma Nirbhar Bharat Abhiyan package or any other special package and any new scheme worth up to Rs. 500 crore will also be suspended to March 2021. Also, those schemes which have been already approved under Budget will also remain deferred till March 31.
Moreover, it has been told to all ministries not to request for any new scheme with the finance ministries.
In a statement, Finance Ministry said, “No New Scheme/Sub Scheme, whether under delegate power to ministry including SFC proposals or through EFC should be initiated in 2020-21 except proposal announced under PM Gareeb Kalyan Package, Aatma Nirbhar Bharat Abhiyan Package and any other special packages.”
It said, “In-principle approval for such schemes will not be given this financial year. Initiation of new schemes already appraised/approved will remain suspended for one year till march 31, 2021 or till further orders whichever is earlier,” it said.
It added, “It may be appreciated that in the wake of the COVID-19 pandemic, there is unprecedented demand on public financial resources and a need to use resources prudently in accordance with emerging and changing priorities.”
On 12 May, Prime Minister Narendra Modi had announced the Rs 20 lakh crore package that estimates 10 per cent of country’s GDP, for all segments including industries, workers, farmers, honest taxpayers, MSMEs, cottage industry and others.