Chief Economic Advisor (CEA) KV Subramaniam said the government could take further steps to boost the economy affected by the second wave of coronavirus.
At the same time, Subramaniam said the demand for the new stimulus package would be taken into consideration in the wake of various measures taken by Finance Minister Nirmala Sitharaman in the 2021-22 budget.
Some enterprises have suggested that the government should offer a stimulus package of Rs 3 trillion to revive the economy, which was hit by the second wave of the epidemic in April-May. Subramaniam’s response to these suggestions has been. According to the Reserve Bank estimates, the country has lost nearly two trillion rupees due to the second wave of the epidemic.
In an interview with PTI, Subramaniam said, “We are ready for further action even last year. But when we talk about the stimulus package, I think there is a big difference between last year and this year.” Many things are included in this.
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He said the main focus was on infrastructure costs. This will increase construction activities and eventually create employment in the unorganized sector. This was in the January-March quarter of the last financial year. The construction sector grew by 15 per cent in the fourth quarter and total fixed capital creation increased by 34 per cent in the fourth quarter compared to GDP, the highest in the last six years, he said.
Subramaniam said the ultimate objective is to ensure the revival of the economy accelerates. The government will do whatever it takes to ensure that. On food safety for the poor, the CEA said the government had already extended its main food program to 80 crore people by November. Pradhan Mantri Garib Kalyan project cost Rs 70,000 crore Subramaniam said the free vaccine is another important economic measure.