No lack of consensus over Covid-19 fiscal packages: Finance ministry

Much higher level of economic and business activities have been reported in the months of July, August and September, the ministry has said.

Dismissing reports that there is a lack of consensus at the highest level regarding Covid-19 fiscal stimulus measures, a finance ministry official said the recent trends of economic recovery, including the increase in GST collection, PMI index, Exports etc., prove that there has never been any lack of consensus.

A worker holds masks stitched at a garments factory, converted to manufacture protective masks amid the coronavirus pandemic, in Kolkata. (PTI)

“The Government has been aware of the ramifications of Covid-19 pandemic and that is the reason why the Ministry of Finance has been proactively and continuously taking measures to provide support to those who need it the most in a holistic manner and those measures are yielding results,” an official said.

“While reading the report card of the Government’s comprehensive measures against the challenges of Covid-19, one must acknowledge the swiftness with which the Government formulated and implemented two major Stimulus Packages - Pradhan Mantri Garib Kalyan Package (PMGKP) on March 26, 2020 and Aatmnirbhar Bharat Package (ANBP) on May 12, 2020 - a special economic and comprehensive package of Rs. 20 lakh crore - equivalent to 10 per cent of India’s GDP ,” the official added.

The phased relaxation of the lockdown, which is still going on, along with several packages announced from time to time has resulted in much higher level of economic and business activities in the months of July, August and September, the ministry has said. This is evident in growth of high frequency indicators like PMI Manufacturing, index of eight core industries, GST collections E-way bills, Kharif sowing, power consumption, railway freight, cargo traffic and passenger vehicle sales, the ministry said.