The first economic stimulus package, which included duty cuts and other sectoral incentives still to take off and the government has started work on the second package expected next week as yet another booster dose to the slackening economy. States are demanding Rs 20,000 crore more funds from the Centre to lift their sectors impacted by global financial crises. In addition they want the Fiscal Responsibility and Budget Management (FRBM) targets to be relaxed to enable more market borrowing.
The state finance ministers have asked for aid from the Centre and for this the states planning to call on the PM soon. The states have also opposed the cut in the sales tax rate of ATF to 4 per cent. They are now facing a tedious task as they lose revenues thanks to a cut in sales tax on diesel and petrol. The committee of secretaries is meeting members of FICCI on December 17 to work out details of the second stimulus package that will focus on infrastructure, housing and auto sectors. The second stimulus package would aim at creating employment in sectors such as infrastructure, auto, housing and textile industry.
The state finance ministers have asked for aid from the Centre and for this the states planning to call on the PM soon. The states have also opposed the cut in the sales tax rate of ATF to 4 per cent. They are now facing a tedious task as they lose revenues thanks to a cut in sales tax on diesel and petrol. The committee of secretaries is meeting members of FICCI on December 17 to work out details of the second stimulus package that will focus on infrastructure, housing and auto sectors. The second stimulus package would aim at creating employment in sectors such as infrastructure, auto, housing and textile industry.
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