Finance Ministry to announce stimulus packages soon for Coronavirus-hit sectors
It is estimated that the next stimulus package would be bigger than the INR 1,70,000 crore worth of schemes announced for the vulnerable section of the society
After the announcement of INR 1.70 lakh crore relief packages by the government in the form of food grains and cash transfers for the poor and vulnerable section of the society, the news of another relief package announcement has already begun to make rounds. While the Finance Ministry is still working on another relief package, which is said to be announced soon; it is estimated that the next stimulus package would be bigger than the INR 1,70,000 crore worth of schemes announced for the vulnerable section of the society.
"The finance ministry is regularly interacting with various economic ministries and getting inputs from them over measures that would be required to give stimulus to the economy in this difficult period. These could be further discussed to finalise a concrete plan once the situation of lockdown becomes a bit clearer. In a lockdown, many of the measures that the government announced may not yield desired results," the officials from the government quoted earlier.
As per reports, the finance ministry including the group of ministers are reviewing the economic impact of various sectors including MSME, hospitality, civil aviation, agriculture and allied sector and based on the inputs a stimulus packed will be worked upon. Also, demand-side measures could look at tax breaks for taxpayers and relief from duty on major items of consumption. Measures to provide more strength to the capital market may also be considered.
After a relief from compliance-related issues, India Inc is now waiting for a package that would address their key issues. Among the suggestions include withdrawal of LTCG temporarily, remove buyback tax while deferring payment of corporate tax. The industry has also suggested that timelines for qualifying delays in loan repayment as NPAs should also be extended.
While announcing the last package, Sitharaman had indicated that the concerns of India Inc, SME and other segments of the economy impacted by the lockdown may be looked and the government will come up with a plan later."Our first priority is to reach food to the poor and reach money in their hand. We will think about other things later," Sitharaman had said then. When a question on relief packages for travel and aviation sectors being largely affected to which finance minister said: "we will come back when something is ready."