The Central government is likely to unveil another stimulus package focusing on stressed sectors, middle-income groups in urban and rural areas, and employment generation before Diwali, said three key officials in the know. The measures are essential to bolster the pandemic-hit economy, they said.
A Reuters report said the government was planning to announce a fresh round of stimulus of about $20 billion this week.
Unlike the first two stimulus packages, this time the focus would be on boosting demand. The third package, too, tried to create demand through the leave travel concession (LTC) route.
Sources said after several rounds of discussion within ministries, the Centre has ruled out direct cash support.
Another round of infusion in the form of direct cash has been discussed extensively but it was observed the measure was not beneficial, they said.
Citing the balance in Jan-Dhan accounts and overall bank deposits, it was noticed that these were almost constant since April, which indicates that people’s spending has come down drastically, said a government source privy to the discussion.
Source: Business Standard
