Nirmala Sitharaman met PM Modi to discuss and activate Stimulus 2.0 MoneySivaranjani Soundararaj (Author) Published Date : Apr 17, 2020 15:27 IST
To support the Indian citizens suffering economically due to the CoVid Janata lockdown. In order to overcome the deficit earlier on March 26, 2020 Finance Minister Nirmala Sitharaman announced a stimulus of 1.7 lakh crore to the poor by providing food grains and basic cooking amenities like natural gas along with some funds to the women, ration card holders and elders respectively.
But now, the extension of lockdown till May 3 forces the government to announce a larger second stimulus package considering the disparities handled by industries facing ample risk.
Considering the illness created by COVID and it's a lockdown, Finance Minister Nirmala Sitharaman met Prime Minister Modi to review the second stimulus plan due to the hard-hit in Medium & Small Scale Industries, the agricultural sector, civil which made millions of peoples employment at stake.
After relieving people's agony by providing stimulus to some extent from late March involving free 5 kg of rice or wheat, LPG refills at zero cost for three months and 1000 rupees to widows, disabled and elderly women.
The Finance Minister Nirmala Sitharaman has insisted already that more relief measures will be provided if the need arises. It is cleared from the government that a second stimulus will be provided for sure to lower the impact, but there is no big bang announcement; instead, the relief measures will be in tranches.
COVID bonds, relaxed fiscal limits, monetizing of deficit are some options in front of the government, but still no final decision made according to the meeting reports. It is expected that the second stimulus will focus on MSME sectors and also provide relief to travel segments, which experienced a hard hit due to the CoronaVirus pandemic social distancing.
To be specific, the stimulus 2.0 will be more in number than the first economic relief fund provided last month with a count of 1.7 lakh crores focusing mainly on poverty and food issues.
RBI officials said that "There is a demand for further easing of monetary policy from stakeholders. Inflationary pressure is also lower. Theoretically, there is a possibility, but the central ban will only take a decision on this matter". He also added that the Reserve Bank will never hesitate to liquify more money if the crisis goes beyond economic limits.