Economy growing, FM announces fresh stimulus

Finance Minister Nirmala Sitharaman says strong signs of economic recovery now visible. She listed several areas where green shoots are now emerging. Higher GST collections, increasing energy consumption, strong market performance are some of the indicators. She says many economists are now writing how the economic recovery has been strong and not just due to pent up demand.Addressing a press conferance in New Delhi on Thursday, Sitharman said that Moody’s too has revived its forecast from 9.6 negative to 8.9 negative. 

She presented the state of the economy, saying markets are at record high and India’s foreign reserves has reached US $560 billion. Sitharaman also said that the Goods and Services Tax (GST) collection has increased by 10 per cent, to over Rs 1 lakh crore. The finance minister said the Kisan credit card scheme given a credit boost to over 2.5 crore farmers, adding that banks have issued Kisan Credit Cards for 157.44 lakh eligible farmers. Sitharaman said that under the PM Matsya Sampada Yojna, 21 states have been sanctioned funds at a total cost of Rs 1681.32 crore. In addition, Rs 25,000 crore has been disbursed to farmers through NABARD under additional emergency working capital funding. She said the housing sector has also benefited from the Rs 7,227 crore disbursed under the Special Liquidity Scheme for NBFCs and HFCs.

Sitharaman praised the government's Atmanirbhar 1.0 scheme.  Finance Minister also said that under the Emergency Credit Liquidity Guarantee Scheme, a total amount of Rs 2.05 lakh crore has been sanctioned to 61 lakh borrowers, of which Rs 1.52 lakh crore has been disbursed. She also stated that the recently introduced LTC cash voucher and Festival Advance scheme have benefitted central government employees.

She also announced Atmanirbhar 3.0 stimulus package and said that a new employment scheme is being launched to incentivise the creation of new employment opportunities. Under the scheme those who lost jobs between March 1, 2020 and September 30, 2020 will get benefits. This scheme will be effective from October 1, 2020. The new eligible employees will be covered for two years.She informed that three lakh crore rupees existing emergency credit line guarantee scheme announced as part of the Atma Nirbhar Bharat Abhiyan for the MSME sector has been extended till 31st March of next year. She said, more than two lakh crore rupees have been sanctioned to 61 lakh borrowers so far. Ms. Nirmala said, the scheme to be utilized for 100 per cent collateral free additional credit at capped interest rate to entities rates in 26 stressed sectors.