New Delhi: The government is expected to announce the second stimulus package in the next two-three days in order to give a boost the economy, which is facing the heat global financial meltdown.We held discussions on Monday. We held discussions...we are looking at it hopefully. We should do it in next two-three days”, Commerce and Industry Minister Kamal Nath told reporters after a meeting of the Group of Ministers (GoM) on Dec 23.
The government on earlier this month came out with the first stimulus package that included an excise duty cut of four per cent across-the-board and along with this an additional public expenditure of Rs 20,000 crore. However, the second stimulus package assumes importance as the industrial growth dropped by 0.4 per cent in October to move into negative territory after 15 years. Apart from this, the exports during the month fell by 12.1 per cent.
Besides the fiscal stimulus package, the Reserve Bank on the other hand reduced the key ratios and policy rates, thereby releasing about Rs 3 lakh crore of liquidity into the system. The mid-year economic review that was tabled in Parliament on Monday projected a lower economic growth rate of seven per cent this fiscal, which was down from nine per cent in the previous fiscal. The review also mentioned that the fiscal stimulus package will increase the fiscal deficit to at least five per cent of the GDP, as compared to 2.5 per cent envisaged in the Budget.
The government on earlier this month came out with the first stimulus package that included an excise duty cut of four per cent across-the-board and along with this an additional public expenditure of Rs 20,000 crore. However, the second stimulus package assumes importance as the industrial growth dropped by 0.4 per cent in October to move into negative territory after 15 years. Apart from this, the exports during the month fell by 12.1 per cent.
Besides the fiscal stimulus package, the Reserve Bank on the other hand reduced the key ratios and policy rates, thereby releasing about Rs 3 lakh crore of liquidity into the system. The mid-year economic review that was tabled in Parliament on Monday projected a lower economic growth rate of seven per cent this fiscal, which was down from nine per cent in the previous fiscal. The review also mentioned that the fiscal stimulus package will increase the fiscal deficit to at least five per cent of the GDP, as compared to 2.5 per cent envisaged in the Budget.
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