Additional budget of Rs. 25,000 crores, in addition to Rs. 4.13 lakh crore given in Union Budget 2020, is being provided for Capital Expenditure
New Delhi: Union Minister for Finance & Corporate Affairs Nirmala Sitharaman today announced measures of Rs 73,000 crore to stimulate consumer spending in the economy in an effort to fight the slowdown due to COVID-19 pandemic following lockdown.
Union Minister of State for Finance & Corporate Affairs Anurag Singh Thakur was also present during the announcement of stimulus package.
While announcing the demand stimulus package, Sitharaman said, “Indications are that savings of government and organised sector employees have increased and we want to incentivise such people to boost demand for the benefit of the less fortunate.” The Finance Minister further said that if demand goes up based on the stimulus measures announced today, it will have an impact on those people who have been affected by COVID-19 and are desperately looking for demand to keep their business going.
The Finance Minister stressed on the idea that today’s solution should not cause tomorrow’s problem. Sitharaman said that the Government does not want to burden the common citizen with future inflation and also not put the Government debt on an unsustainable path.
The Finance Minister said that additional budget of Rs. 25,000 crores, in addition to Rs. 4.13 lakh crore given in Union Budget 2020, is being provided for Capital Expenditure on roads, defence, water supply, urban development and domestically produced capital equipment.