Central Govt Likely To Extend Covid-19 Stimulus Measures With Additional Funding: Report

The central government is likely to extend the duration of relief measures related to Covid-19 and various stimulus packages associated with it to lend assistance to businesses and sectors negatively impacted by the pandemic.

The Union Finance Ministry is also looking to insist the other ministries swiftly roll out these steps and frontload the Rs 5.54 lakh capital spending that was declared in the Budget earlier this year.

Primarily, the Emergency Credit Line Guarantee Scheme (ECLGS) spanning across 30 different sectors could probably see further expansion in addition to a higher capital front too. Banks are said to have sanctioned loans worth Rs 2.54 lakh crore out of the total corpus of Rs three lakh crore allotted to this scheme.

Furthermore, the government is also considering extending the income tax breaks given to the construction and the real estate sector whilst also allotting more significant funds to the rural development scheme.

The Atma Nirbhar Bharat Rozgar Yojana that incentivizes the private sector to generate more employment opportunities will be stretched for an additional period, The Economic Times reports.

Prime Minister Narendra Modi-led government is primarily focusing on streamlining supplementary funding and thereby providing augmented advantages to relief measures that have already been announced before.