Categories: Business

Modi government may again bring relief package in September-October, Indian economy will return fast

Photo: GOOGLE

Center to unveil another fiscal package by the end of September, says S Gurumurthy

new Delhi. Reserve Bank of India (RBI) director S Gurumurthy said in an event on Tuesday that the central government may announce the final relief package in September after the Kovid crisis. Gurumurthy said in a webinar organized by the India Chamber of Commerce that the package of more than Rs 20 lakh crore announced by the central government could be considered as an interim measure.

The RSS thinker said that the final stimulus package is expected to be announced in September or October after the Kovid crisis. He said that European countries and the United States are printing currency to fill the deficit, while there is little scope for India to do so.

Gurumurthy said that the central bank has not yet considered the option of monetization of losses (note printing). Under deficit monetization, the central bank buys government bonds to meet the government's spending needs and in return funds the government from its fund or by printing new notes. He said that India is facing many problems. The government has deposited Rs 16,000 crore in Jan-Dhan bank accounts from April 1 to May 15.

He said that surprisingly, very little money has been withdrawn from those accounts. This suggests that the level of distress is not as high. He said that in the post-Kovid crisis, the world would change from multilateralism to bilateralism and the Indian economy would return very fast.

This post was published on June 17, 2020 1:51 pm

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