The government is working on the next stimulus package to support the economy amid positive signs of a fall in COVID-19 cases, news agency Reuters reported quoting a senior finance ministry official.
The development comes five months after the government rolled out the first stimulus package, called Aatmnirbhar Bharat, to support the economy against the damage caused by the coronavirus pandemic-related nationwide lockdown. That package included monetary and fiscal support worth ₹ 21 lakh crore, which the government said was equivalent to 10 per cent of the country’s gross domestic product (GDP).
Finance Minister Nirmala Sitharaman had announced a slew of measures to spur demand and ramp up capital expenditure earlier this month. This was the third stimulus package since the outbreak of the COVID-19 pandemic.
The government had announced a Rs 1.70 lakh crore Pradhan Mantri Garib Kalyan Yojana (PMGKP) in March to protect the poor and vulnerable sections from the impact of COVID-19 crisis.
It was followed by the Aatmanirbhar Bharat Abhiyan package of Rs 20.97 lakh crore in May, largely focussed on supply side measures and long-term reforms.