In her fifth and final tranche of the AtmaNirbhar package announced on Sunday, Finance Minister Nirmala Sitharaman allocated a chunk of the Centre’s fiscal relief — Rs 40,000 crore or 0.2 per cent of GDP — as additional allocation to MGNREGA over and above the Budget Estimate of Rs 61,500 crore.
Covid-19 India Economic Package: Much of the May 12 Atmanirbhar package of Prime Minister Narendra Modi totaling Rs 20 lakh crore and elaborated over the last five days by Sitharaman has been liquidity driven, with little burden on the exchequer.
If that happens, it won’t be unique to India — the IMF expects the Covid pandemic to severely impact growth across regions in its latest World Economic Outlook. It expects the US economy to shrink 5.9 per cent and the global economy to decelerate 3 per cent.
While most states have written letters to Prime Minister Narendra Modi asking that the Centre clear their pending dues, they are likely to press these demands at a video conference he has scheduled on Thursday.
In an interview to P Vaidyanathan Iyer, Director at the National Institute of Public Finance and Policy Rathin Roy talks about the priorities, pain points, and fiscal needs of what he calls a "warlike economy".
RBI Governor Shaktikanta Das Tuesday slashed the policy rate, flushed the financial system with liquidity using multiple instruments, and used conventional as well as unconventional tools to support the economy.
The central government’s package, as it is, comes a week after Kerala first announced a Rs 20,000-crore support for its people. Many states including Uttar Pradesh, Uttarakhand, Punjab, Telangana and Rajasthan followed suit.
Over the last one month, the government pulled out all stops to contain the spread of the Covid-19. During this period, economic ministries including Commerce and Industry, Heavy Industries, Road Transport, Civil Aviation, Pharmaceuticals and Consumer Affairs met and heard stakeholders.
Speaking about RBI's stance on inflation, Dr Prachi Mishra said, "Core inflation is about 30-40 per cent of the basket, which is low compared to other countries. But that’s a standard macroeconomic indicator of what stage of the cycle you are at".
RBI Governor Shaktikanta Das underlined the central bank’s focus on growth and financial stability, its relationship with the government and the challenge in sustaining the first trickle of positive numbers.
The government has lulled itself into imagining the slowdown is cyclical, and counter-cyclical policies — fiscal and monetary — can reverse the growth path. That be so, but has the government moved with conviction to pursue such policies?
Union Budget 2020-21, presented by Finance Minister Nirmala Sitharaman Saturday, carried a visible imprint of the Prime Minister’s fiscal conservatism, inasmuch as it kept a tight leash on expenditure, tacitly admitting there was little headroom for higher spending.
This sharp powering down has disrupted the plans of Corporate India. Companies across sectors — from those making tractors to toothpaste — had, over the last two decades, been primed to plan for a trend growth rate of 8 per cent.