Relief for exports, realty sector likely in 2nd package: Nath
The second package to stimulate the economy, expected in the next few days, is likely to give monetary and fiscal relief to exports, realty and the housing sectors, Commerce and Industry Minister Kamal Nath said.india Updated: Dec 24, 2008 20:20 IST
The second package to stimulate the economy, expected in the next few days, is likely to give monetary and fiscal relief to exports, realty and the housing sectors, Commerce and Industry Minister Kamal Nath said on Wednesday.
Senior ministers have been holding discussions in the last few days on finalisation of the package with key inputs from the Committee of Secretaries.
When asked whether the government can announce further cuts in duties, Nath said, "We are looking at that also".
The government had announced four per cent across-the- board cut in excise duties in the package announced on December 7.
"We should do it in next two-three days", Nath said yesterday when asked how soon the second package would be unveiled.
Besides cut in excise duty, the last package involved raising the public expenditure by Rs 20,000 crore.
The need for more government measures is being felt in the wake of industrial growth slipping into the negative zone in October, the first time in 15-years.
In addition to the fiscal stimulus, the Reserve Bank through a slew of measures reduced key ratios and policy rates releasing about Rs 3,00,000 crore of liquidity into the system and signaling soft interest rate regime.
The Mid-Year Economic Review tabled in Parliament yesterday projected slowdown in the economic growth rate to 7 per cent from 9 per cent in the previous fiscal.