Finance secretary Ajay Bhushan Pandey on Sunday hinted that the government was working on another stimulus package but he refrained from giving a timeframe.
Planning Commission Deputy Chairman Montek Ahluwalia on Tuesday ruled out any more stimulus package for industry as the Budget has given a substantial boost to the slowing economy.
Finance Minister Pranab Mukherjee on Tuesday said the government had no exit strategy for incentives announced as part of the stimulus packages, even as there has been a 28 per cent fall in indirect tax collections till July.He further said the government was ready to take improved measures to combat drought, which has affected 272 districts in the country.
He said the migrants and poor people had great expectations after the prime minister's address to the nation, but sadly...
Bank of America Securities-Merrill Lynch raised its growth forecast to 6.3 per cent from 5.3 per cent for the current fiscal. BAS-ML has also revised the country's growth projection to 7.3 per cent for the next fiscal from 7.1 per cent earlier.
The Indian-American presidential aspirant also said that New Delhi has played smart in the current global situation and stayed close with Russia.
The Finance Ministry on Wednesday hinted that stimulus packages given to the industry may be rolled back, saying too much stimulus could be injurious when the economy is on a revival mode.
Welcoming the latest round of stimulus announced by Finance Minister Nirmala Sitharaman on Thursday, experts said the measures will support the economic recovery boosting demand, job creation and by providing funds to the MSME and stressed sectors. The fiscal impact of the stimulus is likely to be around 0.25-0.6 per cent of GDP in the current fiscal, they said.
During the meeting with Finance Minister Nirmala Sitharaman, the auto industry broadly presented factors such as issues regarding availability and affordability of financing, increasing cost of acquisition of vehicles and change in axle load capacity for commercial vehicles that have hurt demand.
'If you see another 1000-point correction, people may start panicking.'
Additionally, $5 billion worth of direct benefit transfers is estimated to occur in the next 12-14 months, said the Axis Capital report co-authored by Sachchidanand Shukla and Shiv Nanda.
Shigeru Ishiba is expected to prioritise strengthening Japan's military capabilities and fostering deeper international partnerships, particularly with India, with whom Japan shares significant strategic interests, explains Dr Rajaram Panda.
He also said an impressive industrial growth of 16.8 per cent in December suggests the economy will grow by over 7.5 per cent in 2009-10 and over 8 per cent in the next fiscal.
Industry growth has started picking up in recent months fueling suggestion from RBI and other analysts for partial roll back of stimulus measures taken to ward off the impact of global economic slowdown last year.
"As our region returns to the trend, exit strategies for fiscal stimulus must be carefully timed. If left too long, deficits will be unsustainable; if withdrawan too soon, the region's recovery could be derailed."
Sounding confident of the industry maintaining higher growth rate in the coming months, Cabinet Secretary K M Chandrasekhar has said the government would review the stimulus measures in the FY11 Budget.
Economists on Friday asked Finance Minister Pranab Mukherjee to continue with the fiscal stimulus until firm economic recovery amid intense speculations about a possible withdrawal of measures taken to spur the economy.
The Obama Administration's mega stimulus package that pumped in billions of dollars to revive the sagging US economy at the height of the recession is now giving high returns to the US Treasury, a latest report has said.
The centre will be cautious in withdrawing the fiscal stimulus packages given to key-sectors and will do so only after ensuring growth is sustainable in the economy, Union Minister for Commerce and Industry Anand Sharma said.
But the sector will be impacted due to sluggishness in the Indian economy.
The government on Monday said that the stimulus packages to perk up the economy during the slowdown are not likely to be withdrawn this fiscal and the exit when it happens will be a gradual one.
Last month, Prime Minister Narendra Modi had said that the economy is showing "green shoots" as the country emerges from the coronavirus lockdown and underscored the importance of being focussed on both life and livelihood.
Finance Minister Pranab Mukherjee on Monday said that G-20 countries, a club of developed and developing nations, have agreed to continue with the stimulus packages till the global economy fully recovers.
The beneficiaries of the second set of announcements are expected to be micro, small, and medium enterprises, farmers, women, poor, migrant workers, and other marginalised sections of the society, reports Arup Roychoudhury.
The Reserve Bank on Friday said the new UPA government, which is slated present the Budget some time in July, should resist pressure for another stimulus as sustained economic recovery would require fiscal consolidation in medium term.
In his Budget speech, finance minister Pranab Mukherjee said the stimulus package given in February this year has been extended from June 30 to December 31 this year.
Amid the worst economic recession in decades, a nondenominational church in the US is pushing ahead with "faith stimulus" to help struggling families and laid-off workers.
With the world's worst outbreak of COVID pandemic stalling a nascent economic recovery, the government has begun assessing the impact of the second wave of infections on different sectors and may look at providing support at an appropriate time to segments requiring fiscal help. Some of the economic indicators, including the Goods and Services Tax (GST) collections, still provide confidence and incoming data will throw some more light on the state of the economy, sources said. Services sectors like hospitality, tourism and aviation which had just started recovering were hit hard by the second wave of COVID, the sources said, adding these segments might need some support on an urgent basis from the government.
Former RBI governor R Gandhi said that the RBI needs to re-introduce a one-time restructuring package and mere moratoriums will not suffice in unprecedented times like the COVID-19 pandemic.
The hospitality and tourism sector is among the worst hit because of the pandemic, and is unlikely to recover any time soon as people continue to be cautious of going out in a crowded places.
Minutes before he signed the American Recovery and Reinvestment Act, Obama said, "Today does not mark the end of our economic troubles. But it does mark the beginning of the end -- the beginning of what we need to do to create jobs for Americans scrambling in the wake of layoffs; to provide relief for families worried they won't be able to pay next month's bills; and to set our economy on a firmer foundation, paving the way to long-term growth and prosperity."
Taking note of the difficulties faced by the media industry due to the financial crisis, the government on Saturday said it will shortly announce a stimulus package for the sector.
Planning Commission on Friday said there is no case for providing stimulus to the industry to arrest moderating growth as the fiscal deficit is high and may exceed the Budget estimate of 4.6 per cent by about one percentage point.
Ahead of this year's Budget, leading car manufacturer Maruti Suzuki on Monday asked the government not to roll back the entire stimulus package at once as it may hamper economic growth.
Whether she will pare the fiscal deficit target of 5.1 per cent of GDP, using the record dividend received from the RBI, or expand flagship government programmes will be keenly watched.
The 2009 Budget had raised the rate of MAT to 15 per cent. The industry wants it to be lowered to at least 10 per cent in the forthcoming Budget.
The government on Tuesday said it would withdraw the stimulus package only after assessing its impact on the economic recovery.
At the peak of the slowdown in December 2008, the government had announced a 4 per cent across the board cut in CENVAT that helped in reducing prices and spurred demand. Besides, the states were encouraged to buy more buses for urban transport under the Jawaharlal Nehru National Urban Renewal Mission to give a fillip to the battered commercial vehicles segment.
Asked whether the Budget should start the process of exist, Rangarajan told reporters in New Delhi, "What is required, is a roadmap towards normalisation".
In order to help the industry combat the impact of global financial crisis, the government had provided three stimulus packages to the industry resulting in a revenue sacrifice of Rs 1.86 lakh crore (Rs 1.86 trillion).
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