Measures in stimulus package aimed at greater multiplier effect: Sitharaman

Sitharaman said that the Central government has given some cash transfer in the PM Garib Kalyan scheme announced after the first coronavirus induced lockdown.

Finance Minister Nirmala Sitharaman has said that the Central government’s measures in the special economic package to deal with the impact of coronavirus crisis were aimed at “greater multiplier effect” and it should be through banks for meeting the fixed cost expenditure and for working capital.

Union Minister of Finance and Corporate Affairs Nirmala Sitharaman during press briefing detailing the Centre’s economic stimulus package. (Sonu Mehta/HT PHOTO)

Sitharaman told ANI in an interview on Wednesday that the Central government has given some cash transfer in the PM Garib Kalyan scheme announced after the first coronavirus induced lockdown.

“It was important to give stimulus for businesses to start off. In the PM Garib Kalyan scheme -- introduced after lockdown, we gave some cash transfer. With that done, we weren’t closing the option,” Sitharaman said when asked if the government considered more immediate measure while deciding economic package.

“For cash transfer, we thought it was far more effective because the way in which we’ve planned it, we thought there will be a greater multiplier effect, and therefore, it should be through banks, businesses for meeting the fixed cost expenditure; it should be money which is given for working capital; it should also money for loans so that they can buy raw materials,” she added.

Prime Minister Narendra Modi had earlier this month announced ₹20 lakh crore special economic package to deal with the situation created by the coronavirus and to make the country self-reliant.