PM Modi takes stock of financial sector, reviews progress of Rs 20 lakh crore stimulus package | India News

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NEW DELHI: Prime Minister Narendra Modi on Monday took stock of the financial sector which has been hit arduous by the outbreak of Covid-19 pandemic.
He additionally reviewed the progress of a number of measures introduced below the Rs 20-lakh crore Aatmanirbhar Bharat Abhiyan package to stimulate the economic system and assist the MSME sector and poor sections of society.
According to sources, the Prime Minister has been taking evaluation conferences on numerous elements of the economic system.
As half of this train, sources mentioned, he had a gathering on the financial sector of the economic system which is a crucial pillar in reviving development and demand.
All the secretaries, together with the Finance Secretary, had been half of the assembly and extra such conferences will happen throughout the week, sources mentioned.
Banks and different financial establishments are implementing the majority of the measures introduced below the Rs 20-lakh crore package.
To take care of the Covid disaster, the federal government introduced one of the world’s largest stimulus packages with a give attention to the survival of the enterprise and setting a roadmap for the revival of the economic system.
The five-part stimulus package introduced by Finance Minister Nirmala Sitharaman starting May 13 comprised Rs 5.94 lakh crore within the first tranche that offered credit score line to small companies and assist to shadow banks and electrical energy distribution firms.
The second tranche included free foodgrain to stranded migrant staff for 2 months and credit score to farmers, totalling Rs 3.10 lakh crore. Spending on agri infrastructure and different measures for agriculture and allied sectors within the third tranche totalled to Rs 1.5 lakh crore.
The fourth and fifth tranches that dealt principally with structural reforms together with leisure of overseas direct funding (FDI) restrict in defence, privatisation of six extra airports, and absolutely opening up coal mining to the non-public sector.
As a end result of all these measures, inexperienced shoots are seen within the economic system which is predicted to contract by 4.5 per cent throughout the present fiscal.
Last month, Prime Minister Narendra Modi had mentioned that the economic system is exhibiting “green shoots” because the nation emerges from the coronavirus lockdown and underscored the significance of being focussed on each life and livelihood.
While addressing chief ministers and Lt Governors of 21 states and union territories, Modi had mentioned the hazard of the virus shouldn’t be over but, and there was a necessity to stay vigilant whereas opening up the economic system.
Although a pickup in financial exercise has been seen, full restoration stays a serious problem as industries are functioning with decrease capacities. Fresh lockdown measures introduced by some states attributable to spurt in Covid circumstances have thrown up new challenges.
The authorities has already rationalised its expenditure for the primary two-quarters of this fiscal, compressing all non-essential expenditures of ministries and asking departments and ministries to not provoke any new scheme within the present financial 12 months stating that there’s a want to make use of assets prudently within the wake of the Covid-19 disaster.
The income collections have additionally been decrease, with GST collections for the April-June quarter declining by 41 per cent in comparison with the earlier 12 months.

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