After finance minister Nirmala Sitharaman announced a financial package of Rs 1.7 lakh crore a few days ago, government sources add that the government may come out with another big package
Bengaluru: After finance minister Nirmala Sitharaman announced a financial package of Rs 1.7 lakh crore a few days ago, government sources add that the government may come out with another big package. This package would also address the demand and supply issues that are plaguing the nation.
However, there is no clear information on when this package would be doled out.
Sources add that the package would be much bigger than the Rs 1,70,000 crore worth of schemes announced by Finance Minister Nirmala Sitharaman.
A popular website added officials as saying, "The finance ministry is regularly interacting with various economic ministries and getting inputs from them over measures that would be required to give stimulus to the economy in this difficult period. These could be further discussed to finalise a concrete plan once the situation of lockdown becomes a bit clearer. In a lockdown many of the measures that the government announced may not yield desired results.”
The website also added that this package would focus on concerns of India Inc. and the SME segments, and in particular a relief package for the travel and aviation sectors bearing the maximum brunt of present lockdown. Also, demand side measures could look at tax breaks for taxpayers and relief from duty on major items of consumption.
Kotak institutional equities said in report on consumer spend, as reported by the popular website as, "While lockdown measures seem to be working in reducing the spread of the Covid-19 pandemic globally, the associated loss of income for a large section of the society in India could hurt consumer spends. There is a broad-based expectation from the Indian government to look at additional fiscal measures to counter the effect of the likely slowdown in the economy."
A financial package of this magnitude would certainly help the needy in this hour of crisis.
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Last Updated Apr 8, 2020, 4:03 PM IST