Haven’t Closed Option of Another Stimulus Package: FM Nirmala Sitharaman

Union Finance Minister Nirmala Sitharaman on Monday said that the government has not closed the option for another stimulus package for the purpose of softening the huge economic impact caused due to the Covid-19 pandemic. “We have not closed the option for another stimulus package,” she said. Also Read – PM Modi Takes Stock of Financial Sector, Reviews Progress of Rs 20 Lakh Crore Stimulus Package

“We have now started doing some kind of assessment on GDP contraction, we have got some input. We will have to come up with the assessment, whether in Parliament or in public,” Nirmala Sitharaman said at the launch of book by NK Singh, Chairperson of 15th Finance Commission. Also Read – ‘PM Gave Headline And Blank Page,’ Chidambaram Doubts Stimulus Package, Eagerly Waits For Clarity by Sitharaman

The finance minister held a video conference on Monday with secretaries of the Ministries of Petroleum and Natural Gas and Coal, along with the chairman cum managing directors of 14 Central Public Sector Enterprises (CPSE) belonging to these ministries, to review the capital expenditure (CAPEX) in this financial year. Also Read – ‘What is Centre’s Strategy After May 17?’ Congress Fires Salvo at Modi Govt’s Stimulus Package

Stressing the need for capital expenditure (capex) by CPSEs, Nirmala Sitharaman said that they need to scale up their capex both in the current and the next financial year.

The Minister also said that better performance of CPSEs can help the Indian economy in a big way to recover from the impact of Covid-19.

Sitharaman told the Secretaries concerned to closely monitor the performance of CPSEs in order to ensure the capital expenditure to the tune of 75 per cent of the capital outlay by the end of Q3 of FY 2020-21 and make appropriate plan for it.

She noted that that more coordinated efforts are required at the Secretary-level in the ministries and CMDs in CPSEs to achieve capex targets.

In FY 2019-20, against the capex target of Rs 1,11,672 crore for these 14 CPSEs, the achievement was Rs 1,16,323 crore — 104 per cent.

The capital expenditure target for 2020-21 is Rs 1,15,934 crore.

Mentioning the significant role of CPSEs in giving a push to the growth of the Indian economy, the finance minister encouraged the CPSEs to perform better to achieve their targets and to ensure that the capital outlay for FY 2020-21 is spent properly and within time, said a finance ministry statement.

(With inputs from IANS)