Government Can Announce The Economic Package Next Month

Government can announce the economic package next month, Finance Ministry is in contact with various sectors.

With signs of the second wave of Corona slowing down, demand for economic packages from industry has intensified.

All types of industry organizations, big and small, are calling the economic package necessary to strengthen the growth rate of the economy.

In view of the demand from industry organizations, the government has also started reviewing the evaluation of the economic losses due to the second wave and the measures to compensate for it.

Next month, the government may announce a relief to the small industries so that the jobs of those who work here and the salary they get are not cut.

CISI on behalf of big industry and FISME on behalf of small entrepreneurs are demanding an economic package from the government.

The CII has asked the government to help the weaker sections by giving them cash directly. According to CII President Uday Kotak, the lower class should be given direct assistance of Rs one to two lakh crore rupees.

At the same time, the government will have to provide more capital to its banks to make the loan system flexible. He will have to relax the rules related to debt.

According to economic experts, with the help of 1-2 lakh crores directly, the demand will also come out in the economy.

FISME has told the RBI and the Finance Ministry that the worst impact of the crisis on MSMEs is seen in the employees and their salaries associated with the sector.

To prevent this, the government will have to bear the salary and social security of the workers associated with the MSMEs.

The government should not look at the terms like NPAs and defaults in terms of lending to MSMEs right now.

All types of MSMEs should be included in fully government-guaranteed loans, whether their old loan is in progress or not.

According to entrepreneurs, the second wave of Corona may prove to be a greater challenge for the economy than the first wave.

Because this time the surge in consumption is not expected as soon as the wave ends. It may take at least three to four months for the demand to pick up.

SBI has estimated a loss of six lakh crores in GDP from the lockdowns in the states in April and May. According to sources, the Finance Ministry is reviewing the suggestions and demands received from various sectors these days.

The re-unlock process can begin in the states from the first week of June. Only then will the Ministry announce any type of package.