Union Finance Minister Nirmala Sitharaman on Saturday said that the Centre had studied stimulus packages by other countries before announcing it in the country to revive the economy. Prime Minister Narendra Modi had earlier this month announced Rs 20 lakh crore special economic package to deal with the situation created by COVID-19 and to make the country self-reliant.
Sitharaman said during an interaction with BJP leader Nalin Kohli through Facebook that every country has brought in a basket of measures- fiscal, monetary, guarantee, central liquidity, and so on.
"Before doing this, we have compared every announcement made by different countries before us to see what their package consisted of. All that has been studied. Every country has brought in a basket of measures- fiscal, monetary, guarantee, central liquidity, and so on," Sitharaman said during an interaction with BJP leader Nalin Kohli through Facebook.
"To think that all other countries have come up with the only outgo from budget and not as though they've underplayed everything else they've done. On the contrary, they have also gone into liquidity being infused both through the central bank and through their own guarantee and other things," she added.
Sitharaman said that India was no different from these other countries, but added, "The proportion might vary. When developed countries have certain institutions, it is possible for them to go through one route and play less on the other route." Defending the route taken by the Central government, she said the measures taken by them involved attempt to "infuse cash into the hands of people through their Jan Dhan accounts", and added that it will be able to infuse more liquidity into the economy.
The Finance Minister had earlier said that the Centre's measures in the special economic package to deal with the impact of coronavirus crisis were aimed at "greater multiplier effect" and it should be through banks for meeting the fixed cost expenditure and for working capital.
Finance Minister Nirmala Sitharaman had announced the fifth and final tranche of Stimulus 2.0 on Sunday. The financial package of Rs 20 lakh crores as announced by PM Modi in his address to the nation last Tuesday is meant to provide a boost to the economy which has been impacted due to the Coronavirus crisis and consequent lockdown.
Major reforms and measures announced under the second stimulus include Rs. 3 lakh crore collateral-free automatic loans for business, Global tenders to be disallowed up to Rs. 200 crore, One nation one ration card in three months, Rs 5000 Credit facility for street vendors, and Corporatisation of Ordnance Factory Board.
(With inputs from ANI)