Second stimulus package in 2-3 days: Kamal Nath
The second stimulus package assumes importance as the industrial growth fell by 0.4 per cent in October to move into negative zone after 15 years, while exports declined by 12 pc during the month.business Updated: Dec 23, 2008 22:17 IST
The Government is expected to announce the much-awaited second stimulus package in the next two-three days to boost the economy which is facing the heat global financial meltdown.
"We held discussions yesterday. We held discussions today ...We are looking at it hopefully. We should do it in next two-three days," Commerce and Industry Minister Kamal Nath told reporters after a meeting of the Group of Ministers (GoM) on Tuesday.
The Government on December 7 came out with the first stimulus package which included an across-the-board excise duty cut of four per cent and an additional public expenditure of Rs 20,000 crore.
The second stimulus package assumes importance as the industrial growth fell by 0.4 per cent in October to move into negative zone after 15 years, while exports declined by 12.1 per cent during the month.
In addition to the fiscal stimulus, the Reserve Bank through a slew of measures reduced the key ratios and policy rates, thereby releasing about Rs 3 lakh crore of liquidity into the system.
The mid-year economic review tabled in Parliament on Tuesday projected a lower economic growth rate of seven per cent this fiscal, down from nine per cent in the previous fiscal.
The review also mentioned that the fiscal stimulus package will increase the fiscal deficit to at least five per cent of the GDP, as against 2.5 per cent envisaged in the Budget.
As a counter cyclical measure to push economic growth, the government has already decided to raise public expenditure by Rs 1.47 lakh crore, over Rs 7.5 lakh crore outlined in the budget.