Govt Open To Coming Out With More Measures To Boost Economy: CEA KV Subramanian

Chief Economic Advisor (CEA) KV Subramanian yesterday (20 June) said that the Government is open to coming out with more measures to boost the economy which has taken a big blow from the second wave of COVID-19, reports Economic Times.

Subramanian though emphasised that the demand for a fresh stimulus package has to be considered against the backdrop of a host of initiatives taken by Union Finance Minister Nirmala Sitharaman in her budget for 2021-22, which was tabled before the Parliament in February.

Subramanian elaborated that, unlike the previous budget which was framed before the pandemic, the 2021 budget was presented amid the pandemic and had already incorporated significant fiscal expansion. He added that the focus is particularly on infrastructure spending which leads to construction activity and creation of jobs in the informal sector and demand generation.

Subramanian made the assertions in response to the suggestion put forward by some industry bodies that the government needed to come out with a Rs three lakh crore stimulus package. Emphasising that the final objective is to ensure that the economic recovery gathers pace, he said, the Government will do whatever is necessary to ensure that.

It should be noted that as per an assessment by the Reserve Bank of India (RBI), the second wave has cost the nation about Rs two lakh crore in terms of output lost.