1.7 lakh crore announced by the government due to the lock down isn’t sufficient” said by the former RBI Governor

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Rupees 1.7 lakh crore relief package was announced by the government aimed at providing benefits to the people who were badly affected by the covid-19 lockdown, medical personal insurance was also provided by under under the program. Free cereals and cooking gas for 3 months aside from cash through direct transfers will be provided to about 800 million people. On 25th March the 21 day lockdown began.

Higher wages are included in the Pradhanmantri Garib Kalyan Yojana under the Mahatma Gandhi National Rural Employment Act, approximately 30 million poor senior citizens, widows and disabled will get a payment of rupees1000 and insurance cover of rupees 50 lakh each will be provided to approximately 2 million people who are working in healthcare companies for battling the disease.

1.7 lakh

On 26 March,” the financial stimulus of rupees 1.7 lakh crore announced by the government due to the lock down isn’t sufficient” said the former RBI Governor ,Duvvuri Subbarao. According to him, the government desperately should increase its expenditure and cap its borrowing. Subbarao included the combined fiscal deficit budget of this year of the centre and States a 6.5% GDP and will reach to 13 to 14 percent.

Also the Confederation of Indian Industry director general Chandrajit Chatterjee said that if disruptions continue for next 3 months the government could be more experimental in its expenditure with all in all fiscal stimulus at 2.5- 3%.

 

Also read:-The Government has decided to raise its gross market borrowing target for the current financial year to Rs. 12 Lakh crore