Package of 1.5 lakh crore rupees from Modi government due to recession of coronovirus.There is a possibility of mega package this week.


Sources said the package, which could be announced by the end of the week,
would be used to directly pour money into the accounts of over 100 million poor and hit businesses hardest by the lockdown.




The Government of India is not yet to finalize the package and discussions are on between Prime Minister Narendra Modi's office, the Ministry of Finance and the Reserve Bank of India (RBI), both sources said that the name of the case was not disclosed.


One of the sources, a senior government official said, the incentive scheme could be as large as Rs 2.3 trillion, but the final number was still under discussion.

Sources said the package, which could be announced by the end of the week, would be used to directly pour money into the accounts of over 100 million poor
and hit businesses hardest by the lockdown.

India woke up on Wednesday to a massive lockout of its 1.3 billion people, one of the world's most ambitious efforts to fight coronavirus. India has identified 562 confirmed cases of the disease,
which has so far claimed nine lives in the South Asian nation.

The government has also stepped up its lending scheme for FY 2020/21, starting on 1 April, from gross planned borrowings of Rs 7.8 trillion currently, both sources said.


Sources said that the government had asked the central bank to buy some of the government securities issued, which has not been done by the central bank of India for decades, due to inflationary fears.

The first official said, "RBI will have to buy bonds just like other central banks of the world."

The second official said that the government could also use the methods and means of the central bank - an overdraft facility offered to the state by the RBI - if it faces a cash crunch.

The Finance Ministry declined to comment on the plan and RBI did not immediately respond to a comment requesting an e-mail.

On Tuesday, Finance Minister Nirmala Sitharaman said the government would soon announce a package to remove the coronovirus effect on the economy,
while relaxing the deadline for tax filing and raising the default limit for starting bankruptcy proceedings.

Post a comment

0 Comments