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'More stimulus measures next week'

business Updated: Dec 11, 2008 20:01 IST

IANS
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The government, in a fiscal stimulus package announced on Sunday, slashed the central value-added tax by 4 per cent across the board to boost demand.

The government will announce more stimulus measures next week to help sectors like engineering, textiles and agriculture beat the global downturn, Commerce Minister Kamal Nath said in New Delhi on Thursday.

There could be more refinance facilities for exports, which have taken a huge hit due to the slowdown, the minister said at a function.

"We expect exports in 2008-09 to grow between 16-20 per cent. We will continue to have measures and the latest package is not the final one," Kamal Nath said.

The government, in a fiscal stimulus package announced on Sunday, slashed the central value-added tax (Cenvat) by 4 per cent across the board to boost demand. This move has led to price cuts in auto, cement and textiles sectors.

The package has also earmarked an additional Rs 200 billion (Rs.20,000 crore) for infrastructure, industry and export sectors.

The Cenvat cut will entail a revenue loss of Rs 87 billion (Rs.8,700 crore) in the next four months for the government.

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