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New Delhi29 minutes ago
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- Finance Minister Nirmala Sitharaman said- Consultation is being done with the states-industry
- Ministry of Finance gave incentive package to deal with Kovid in 2020
There is no decision yet on the next stimulus package to deal with the second wave of Corona. The adverse economic impact of recently imposed restrictions such as lockdowns is being assessed. Talks are also being held with the state governments regarding this. Finance Minister Nirmala Sitharaman has said this.
Consultation with industry-states
In the press conference after the GST Council meeting, Nirmala Sitharaman said that we had announced the budget on 1 February. We are now in May. We have a whole year to move forward. Meanwhile, a second wave of corona ensued. However, a full lockdown was not imposed during this time. Only states imposed restrictions like lockdown. Now we are taking input. We need to understand where there has been an impact and how much has happened? The consultation process is underway. Consultation with states and industry is taking place.
Economy has been affected due to Kovid
The Finance Minister’s statement comes at a time when the Indian economy is going through a bad crisis due to the second wave of Kovid. Many states have imposed restrictions such as lockdown to prevent the spread of Kovid. Experts say another stimulus package could revive the economy. Earlier several media reports had said that the Finance Ministry may announce another stimulus package like 2020.
Indian economy outlook weakened
According to a recent Reuters poll, the outlook for the Indian economy is looking weak once again. The poll states that the jobs crisis in India may deepen in the coming years. Recently imposed restrictions have hindered economic activity. This has left millions of people away from work. A Reuters poll has forecast a 21.6% decline in the current quarter on an annualized basis.
Tourism and aviation sectors most affected
Various states have adopted measures such as lockdown and partial curfew to prevent corona infection. Due to this, the movement of people has been banned. The biggest impact has been on the tourism, aviation and hospitality sectors. The sector was also badly affected by the nationwide lockdown imposed in 2020.
Most economists also reduced growth estimates
Most economists have also slashed growth estimates for the fiscal year beginning April 1 due to the second wave of Corona. Double digit growth seems unlikely due to rising unemployment rate and reduced savings. However, the International Monetary Fund (IMF) has projected 12.5% growth in the current financial year. At the same time, the Reserve Bank of India (RBI) has estimated the growth rate to be 10.5%.
20.97 lakh crore package was announced last year
The central government announced an incentive package of Rs 20.97 lakh crore in May last year to deal with the adverse economic impact of Kovid. In this announcement made in 5 stages, almost all sectors were given relief. Apart from this, the RBI also made announcements such as loan moratorium, loan re-structuring, allocation of funds for loans to some sectors to provide relief to businesses. Even before Diwali last year, the central government had made several announcements for government employees to boost the economy.