New Delhi: Chief Economic Advisor (CEA) KV Subramaniam has said that the government can take more measures to stimulate the economy affected by the second wave of corona virus. However, along with this, Subramaniam said that the demand for a new stimulus package will be considered in view of the various measures taken by Finance Minister Nirmala Sitharaman in the budget 2021-22. Some industry organizations have suggested that the government should provide a stimulus package of three lakh crore rupees to revive the economy affected by the second wave of the epidemic in April-May. Subramaniam’s response has come on these suggestions.
According to an assessment by the Reserve Bank, the country has suffered a production loss of about Rs two lakh crore due to the second wave of the pandemic. Subramaniam said that last year also we were ready for more measures. But I think when we are talking about stimulus package, there is a big difference between last year and this year. Clarifying things, he said that the last budget was presented before the pandemic. But this time the budget has been presented amid the pandemic. Many things have already been covered in this.
The main focus is on infrastructure spending, he said. This increases construction activities and ultimately creates employment in the unorganized sector. This was seen in the January-March quarter of the last financial year. He said the construction sector grew by 15 per cent in the fourth quarter due to significant capex from the government.