Tuesday 14 April 2020

Covid-19 crisis: PM, FM to finalise details of second stimulus package soon

The stimulus package is expected anytime this week and will again be aimed at the urban and rural poor; disadvantaged sections of society; MSME sector; and some of the worst-affected sectors
Nirmala Sitharaman
Prime Minister Narendra Modi and Finance Minister Nirmala Sitharaman are expected to meet soon to finalise the details of a second stimulus package to mitigate the impact of Covid-19 on the economy, Business Standard has learnt. The meeting is also likely to be attended by senior officials from the finance ministry and the Prime Minister’s Office.
The stimulus package is expected anytime this week and will be aimed at the urban and rural poor; disadvantaged sections of society; micro, small and medium enterprises (MSMEs); and some of the worst-affected sectors. Late last month, Sitharaman had announced a Rs 1.7 trillion stimulus package, which included measures like free foodgrain and direct cash transfers for targeted beneficiaries, and an increase in wages under the employment guarantee programme.


A senior government official said this would not necessarily be the last Covid-related stimulus package. A call on further measures will be taken later, and could even be announced after the lifting of the lockdown. The measures that are being finalised could include easier access to credit for MSMEs, and further cash and food transfers, sources said. “There is a proposal for another hike in MGNREGA payments,” an official said. To create some rural jobs, officials said the construction of rural roads during the lockdown period, with the help of MGNREGA workers, was being considered. The resumption of economic activity from rural areas, they said, was the safest bet since Covid-19 hotspots were mostly centered in urban or semi-urban areas…Read Here More

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