Coronavirus Crisis: Govt Likely To Announce Rs 2.3 Trillion Economic Stimulus Package Soon

Modi government has announced several economic relaxation in order to provide relief to citizens amid the coronavirus outbreak.

A woman buys vegetable from a vendor near closed shops after the authorities imposed a lockdown as a preventive measure against the COVID-19. (Image: AFP)

New Delhi: With all eyes on Finance Minister Nirmala Sitharaman in the wake of possible financial crisis amid Coronavirus outbreak in the country, Finance Ministry is most likely to announce an economic stimulus package of more than Rs 1.5 trillion to fight the downturn. According to a report by news agency Reuters, though the Central government has not yet finalised the package, discussions are ongoing between Prime Minister Office (PMO), the Finance Ministry and Reserve Bank of India (RBI). One of the sources, a senior government official told the news agency that the stimulus plan could be as large as Rs 2.3 trillion, but final numbers were still in discussion. "The package, which could be announced by the end of the week, will be used to put money directly into the accounts of more than 100 million poor and to support businesses hit the hardest by the lockdown," Reuters quoted the sources as saying. ALSO WATCH | Nirmala Sitharaman Extends Tax Filing Date, Eases ATM, Bank Charges: Full PC Meanwhile, the Modi government has announced several economic relaxation in order to provide relief to citizens amid the Coronavirus outbreak. Finance Ministry removed charges on withdrawal of funds from other bank ATMs and also exempted account holders from maintaining minimum balance. Announcing the initiatives, Sitharaman said these concessions will continue for three months till June 30. She also announced reduced bank charges for digital trade transactions for all trade finance consumers to promote digital payment.

(2/3)Decisions concerning statutory and regulatory compliance matters related to Financial Services are : Relaxations for 3 months : - Debit cardholders to withdraw cash for free from any other banks’ ATM for 3 months - Waiver of minimum balance fee

— Ministry of Finance (@FinMinIndia) March 24, 2020

While hinting a possible economic package rollout, Sitharaman said as a first step they were addressing the compliance related issues and an economic package covering issues of concern to the industry would be announced separately later. "The economic package is going to be announced soon," Sitharaman said while announcing a set of compliance related issues including extension of dates for filing IT and GST returns. Sitharaman also gave an indication about the package in a tweet on Tuesday. "Even as we are readying an economic package to help us through the corona lockdown (on priority, to be announced soon) I will address the media at 2 pm today, specifically on statutory and regulatory compliance matters Via video conference," said the tweet of the finance minister.

Even as we are readying an economic package to help us through the Corona lockdown (on priority, to be announced soon) I will address the media at 2pm today, specifically on statutory and regulatory compliance matters. Via video conference. @FinMinIndia @PIB_India @ANI @PTI_News

— Nirmala Sitharaman (@nsitharaman) March 24, 2020

The Indian economy that had already slowed down before the outbreak of Coronavirus, is in for a more difficult period in the coming months with businesses almost coming to a standstill. The finance ministry and the RBI have taken several steps to ensure that liquidity in the system remains intact. But Industry has called for more stimulus measures to fight depression like conditions setting in the economy.