The finance minister recently announced stimulus package forgovernment employees to boost spending on GST-taxed goods and services and thusnot only revitalize the economy for the common man but also for the government.These plans included a 'LTC Cash Voucher Scheme' and a 'Special FestivalAdvance Scheme'.
Now, a week later, she has announced that she is open to theoption of another round of stimulus with a view to support the economy amid thepandemic.
Speaking at the virtual launch of the autobiography of 15thFinance Commission Chairman N.K. Singh, titled "Portraits of Power: Half aCentury of Being at Ringside", Sitharaman said that all the announcementsmade so far have come after a lot consideration of inputs from differentsections of the society followed by working out on them within the FinanceMinistry also also with the Prime Minister's Office.
"I have not closed the option for another stimuluspackage," she said.
In May, the government came up with the much talked about Rs20 lakh crore 'Aatmanirbhar Bharat' economic package. Both the rounds ofstimulus so far have received flak along with appreciation from the industryand experts, as many are of the opinion that they are inadequate, more so interms of boosting demand.
A recent Moody's report said that that the second round offiscal stimulus amounts to just 0.2 per cent of the country's real GDP forecastfor the financial year 2021 and in total, the two rounds of stimulus bring thegovernment's direct spending on coronavirus-related fiscal support to justaround 1.2 per cent of GDP.
In addition the Finance Minister also informed that thegovernment has now started assessing the GDP contraction, and will have to comeup with its report, whether in Parliament or in public.
It is noteworthy that the International Monetary Fund (IMF) recentlyprojected that Bangladesh will leave behind India in terms of per capita GDP inthis year.