Udayavni Special

Not ruling out possibility of another round of stimulus: FM Nirmala Sitharaman


PTI, Oct 20, 2020, 11:36 AM IST

New Delhi: Finance Minister Nirmala Sitharaman on Monday said the government has begun an exercise to assess the impact of the pandemic on the economy and likely contraction in GDP, even as she did not rule out the possibility of another stimulus to boost growth.

“I have not closed the option for another stimulus … Every time we have announced one, it has been after a lot of consideration… I have not closed the option to come up with one more stimulus,” she said at the launch of a book — Portraits of Power: Half a Century of Being at Ringside – by the 15th Finance Commission Chairman N K Singh.

Last week, Sitharaman had announced a payment of cash in lieu of LTC and Rs 10,000 festival advance to the government employees to stimulate consumer demand during the festive season and boost the economy.

She also announced additional capital spending and Rs 12,000 crore, 50-year interest-free loan to states to boost the economy that has been battered by the pandemic and the resulting lockdown.

These two measures are expected to create a consumer demand of about Rs 28,000 crore.

The government, which had in May announced a Rs 20 lakh crore ‘Aatmanirbhar Bharat’ stimulus, is pushing ahead with a full opening to try to boost the economy ahead of the usually high-spending festival season.

To a question on whether the Finance Ministry would come out with an assessment of economic contraction, Sitharaman said the ministry has started doing some assessment since the beginning of October and would soon come with a projection.

“We have only now started doing some kind of an assessment. We waited for the commencement of the second half, which has just started. And we have got a lot of inputs which are very different from what we had in July. And ideally, it should be so.

“Perhaps yes sometime we will have to come out with a statement. Whether I do it in public or do it in Parliament is one thing, but the Finance Ministry will have to make an assessment of what it is going to be,” she said.

The Reserve Bank of India has projected the Indian economy to contract 9.5 per cent in the current fiscal, while the International Monetary Fund (IMF) and World Bank estimates the contraction at 10.3 per cent and 9.6 per cent, respectively.

A tough lockdown imposed to stem the spread of coronavirus had resulted in the economy contracting by a record 23.9 per cent during April-June.

Sitharaman further said the ministry would soon approach the Cabinet on demarcating the strategic and non-strategic sectors.

In May, the minister had announced that a new coherent Public Sector Enterprises Policy would be formulated to push reforms in central public sector enterprises (CPSEs). There will be a maximum of four public sector companies in strategic sectors, and state-owned firms in other segments will eventually be privatised.

“Work is going on and I would like to see a realisation on that.. (it) is likely to come to the Cabinet,” Sitharaman said.

Speaking at the event, Reliance Industries Chairman Mukesh Ambani said India needs to rethink and reinvent manufacturing.

“… We need as much thinking about bricks as we have about clicks. We need to think in terms of an entire ecosystem that delivers the future industries and future services,” Ambani said.

Udayavani is now on Telegram. Click here to join our channel and stay updated with the latest news.

Top News

K’taka COVID-19 update: 1330 new cases, 886 discharges, 14 deaths on Nov 30

Indian Navy successfully test-fires naval version of BrahMos missile

Rotary members organise inter-State bike ride; aim to raise Rs 3cr for COVID-19 vaccine fund

Cyclone likely to hit Tamil Nadu on December 4, warns IMD; second time in a week

NCP leader Rekha Bhausaheb Jare dies after throat slit in road rage incident

Ill-informed, unwarranted’: India condemns Canadian PM Justin Trudeau’s comments on farmers’ protest

Chennai volunteer’s illness not due to COVISHIELD vaccine dose, clarifies SII



Related Articles More

Indian Navy successfully test-fires naval version of BrahMos missile

Eight Infants Die at Shahdol Hospital in Madhya Pradesh in 4 Days, Probe Ordered

Out to support agitating farmers, Shaheen Bagh’s Bilkis Dadi turned away from Singhu border

Govt proposes to form committee to look into farmers’ issues

Postal ballot for COVID-19 patients in Kerala civic body polls

MUST WATCH

Boat tragedy: Dead body of one fishermen found

Mangaluru: Six fishermen missing after boat overturns

Leaving Kannada language in the nameplate of Krishna Math : Severe objection by Kasapa

What is the importance of Ayurvedic medical system in treating diseases?

Success story of a couple In Agriculture | Integrated Farming

Latest Additions

Congress to oppose Love Jihad, anti-cow slaughter laws if introduced in Karnataka: Siddaramaiah

K’taka COVID-19 update: 1330 new cases, 886 discharges, 14 deaths on Nov 30

Indian Navy successfully test-fires naval version of BrahMos missile

Bagalkote: Mahalingapura councillor says she had miscarriage after being shoved by MLA Savadi

Eight Infants Die at Shahdol Hospital in Madhya Pradesh in 4 Days, Probe Ordered

Thanks for visiting Udayavani

You seem to have an Ad Blocker on.
To continue reading, please turn it off or whitelist Udayavani.