Saturday, December 6, 2008

More Stimulus Plans On The Anvil Nath - Dec 06, 2008

A stimulus package for the economy to be announced on Saturday by the government and Reserve Bank will not be single assistance, but would be the first in a series of measures to help sectors hit by the global slowdown.Along with this on Saturday, RBI is expected to announce a cut in the short-term rates in indicating banks to reduce interest rates on a host of interest-sensitive sectors like automobile, real estate and infrastructure. The government is also set to cut excise on commercial vehicles, whose manufacturers have reported a sharp decline in sales in November.

Exports too declined by over 12 per cent in October and the target for the fiscal is being revised downwards to $175 billion from $200 billion. A government survey of 121 export-oriented manufacturing units indicated 65,000 job cuts in the last three months with worsening of the global economic situation. Prime Minister Manmohan Singh, who has taken charge of the finance portfolio, chaired a meeting of the apex committee on December 2 to discuss the package.

No comments: