New Delhi: The Union Finance Ministry is working on one more booster dose to give a leg-up to the economy that has hit over six-year low of five per cent, a senior official said, Tuesday.
The blue print for the stimulus is ready that would be announced by Finance Minister Nirmala Sitharaman in the next few days, the official said without giving further details.
The government had earlier announced a slew of measures in three dosages which include a special window for real estate, export incentives, bank consolidation and sops for micro, small and medium enterprises (MSMEs) and the automobile sector.
Earlier this week, RBI Governor Shaktikanta Das had said the government has taken a number of measures to boost the economy in three phases and indicated that more steps are likely.
“I think with right measures taken, things should improve. It’s a positive trend that the government is responding fast and I don’t think we have heard the last from the government with regard to dealing with the current economic situation… My expectation is that it will be a continuous process and they would definitely be dealing with other challenges,” Shaktikanta Das had stated.
The first set of announcements was made August 23 that included rollback of the enhanced surcharge imposed on foreign portfolio and domestic investors in Budget 2019-20.
Some 40 per cent of foreign portfolio investors (FPIs) automatically came under the higher tax rate as they have been investing as a non-corporate entity, such as trust or association of persons (AOPs), which in the income tax law is classified as an individual for the purpose of taxation.
It was followed by announcement with regard to consolidation of 10 public sector banks (PSBs) into four, August 30.
Last week, the government announced a slew of measures to boost exports and the real estate sector.
During the week, Finance Minister Nirmala Sitharaman will chair the 37th meeting of the GST Council, which is expected to discuss rate revisions for various sectors, including automobiles, fast-moving consumer goods, and hotels. She will also meet heads of the PSBs to discuss issues, including following up on transmission of monetary policy rates.
PTI