Government Assessing The Need For Relief Package

Government assessing the need for Relief Package, these sectors may need immediate help.

The central government has started assessing the damage caused to the industry, businesses and other parties by the second wave of Corona.

The aim is to consider the relief package and provide adequate help to the needy sectors and industries at the right time. According to sources, the NITI Aayog is working on key areas of the economy.

The Commission is working to find out which sectors of the economy may need immediate help and what can be done to pursue them. The Finance Ministry will take a decision on this after the NITI Aayog suggests the plan.

Sources say that selective economic indicators, including the GST collection, are still assuring the government that the situation has not deteriorated too much.

Now on 31 May, the National Statistics Office (NSO) Chunindra is going to release key figures, which will be able to know the true state of the economy.

Services sectors such as hospitality, hospitality, tourism and aviation were recovering from last year’s Corona crisis that hit another wave this year.

They may need immediate financial help from the government. Then, MSME sector, the second largest employer in the country after agriculture, is also badly hit by the second wave, which will need financial help.

Sources say that for these the government can provide some relief under the existing Emergency Credit Line Guarantee Scheme (ECLGS).

Currently, about 6.5 crore companies in the MSME sector are contributing up to 30 per cent to the country’s GDP. The Reserve Bank of India (RBI) had earlier this month announced a debt restructuring for small borrowers.

But experts believe that its benefits will be seen only when the lockdown imposed at this time in many states will be completely over.

The manner in which the rating agencies have slashed the growth rate estimates for the current financial year, one after the other over the last few years, it is clear that some sectors need immediate help.

The Asian Development Bank has forecast a growth rate of 11 percent.

But Moody’s has reduced it to 9.3 per cent. After the second wave of Corona surfaced, S&P Global Ratings said that India’s growth rate in the current financial year (2021-22) will not be more than 9.8 percent.

It is noteworthy that after the Corona crisis surfaced last year, the central government announced a relief package of about Rs 27.1 lakh crore in installments.