New Delhi: The Narendra Modi government on Monday afternoon unveiled two new plans aimed at boosting demand in the flagging Indian economy, one that nudges Central government employees to spend more this fiscal year and the other for state governments to allocate more money towards capital expenditure.
The consumer spending proposals include a new leave travel concession (LTC) cash voucher scheme and the revival of an old special festival advance programme that was abolished by the 7th pay commission.
Both programmes, along with new interest-free loans to state governments and increased capex spending by the Centre, are expected to give a Rs 73,000 crore boost to demand in the economy if implemented fully.
“There is no gain saying that the pandemic has affected the economy adversely…Supply constraints have somewhat eased but consumer demand still needs to be given a bit of a boost,” finance minister Nirmala Sitharaman said at a press conferenceRead more…
