The central government is likely to announce another economic relief package around June-July. The stimulus package may include a scheme to promote health infrastructure in tier 2 cities and an increased Emergency Credit Line Guarantee Scheme (ECLGS) limit of Rs 4.5 lakh crore.
The central government is likely to announce another economic relief package amid concerns about the third COVID-19 wave, sources told CNBC-TV18 on Friday.
The measures that may include a scheme to promote health infrastructure in tier 2 cities, and an increased Emergency Credit Line Guarantee Scheme (ECLGS) limit of Rs 4.5 lakh crore are likely to be announced around June - July, the sources said.
The Cabinet nod for up to Rs 31,000 crore government guarantee for ‘bad bank’ structure is also in process, they added.
The development comes a day after Principal Economic Advisor to the Finance Ministry, Sanjeev Sanyal, on Wednesday, said the Centre will closely monitor COVID-19 infection data for six weeks to chart the path it needs to walk for economic intervention, instead of making announcements based on projections of the third wave, according to PTI.
"We are dealing with uncertainty. Third-wave may happen but we don't know how it will unfold. We need to take some steps against the third wave as a policymaker, and we will carry monetary and fiscal interventions if required. "But we need to watch carefully the high-frequency data for six weeks and monitor the testing rather than prejudge how it will behave," he said at an interactive session with MCCI.
Sanyal said that fresh interventions could be targeted at sectors based on actual situations rather than generalised ones. "With the steps already taken on the demand side, some sectors are already redhot, but some sectors like tourism and hospitality are not. If generalised interventions are done, the demand and the growth will spurt but will have the problem of inflation," the economist said.
The government and Reserve Bank of India have together announced stimulus measures worth Rs 29,87,641 crore to revive the economy, Finance Minister Nirmala Sitharaman had said in November last year while announcing stimulus measures under Atmanirbhar Bharat Abhiyaan 3.0.