Centre may announce stimulus package worth Rs 1 lakh cr

The Centre may soon announce another fiscal package which should be almost similar to the Rs 1.75 lakh crore stimulus announced last month, a report said.

The new package should focus on interest rate subventions to medium businesses, sops for the troubled realty sector and also state run banks' recapitalisation, 'Bank of America Securities' said.

Last month, the government had announced a package focusing on the individuals and the weaker sections to help overcome the setbacks of the COVID-19 pandemic, which was termed as not aggressive enough.

Economists at the state-run SBI have said that much of the earlier stimulus package was already announced for in the budget and only Rs 70,000 crore is fresh.

“We expect the Ministry of Finance to announce a second fiscal stimulus of 0.3 per cent of GDP atop 0.35 per cent done,” the BofA Securities economists said.

In support of the expectation, they said worries over fiscal deficit and inflation are 'overdone', they said, adding that so far the Narendra Modi government has shown prudence on this side.

(Agencies)