Union government to declare measures to boost economy

New Delhi – The Chief Economic Advisor of the country, KV Subramanian, indicated that the union government may soon announce an economic package to provide an impetus to the country’s economy, hit by the second wave Coronavirus pandemic. Subramanian said that government would come forward with certain measures for the progress of the economy. Furthermore, reports had been received that the industry has asked for a package worth ₹3 trillion. Against this background, the information given by the Chief Economic Advisor becomes significant.

The economy slowed down due to the second wave of Coronavirus pandemic that hit the country in April and May. As per the Reserve Bank of India estimates, the losses to the economy were to the tune of ₹2 trillion. Against this background, different things are being advised to the government from the industry organisations. As a result, industrial organisations have asked the government for a package worth ₹3 trillion.

Chief Economic Advisor Subramanian said that the government might take certain other measures to encourage economic growth. But Subramanian underlined that the measures taken by the government would be different from the last year. Last year, Union Finance Minister Nirmala Sitharaman announced an economic package of ₹20 trillion in three phases. However, the package announced last year was different from the provisions in the union budget. Subramanian underlined that this was because the crisis struck after the presentation of the Union budget.

But this year’s package will be of a different kind. This year, the budget was presented while the country was battling the Coronavirus pandemic. Therefore, many provisions have been made in the union budget. Subramanian pointed out that the measures taken now for providing an impetus to the economy will be in line with the 2021-22 union budget.

The sole objective of the government is to provide impetus to the economy. Therefore, the government will do whatever necessary for this purpose. Subramanian also underlined that the government recently extended the free monthly food grain supply to the poor, in the country, till November.