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Nirmala Sitharaman, finance minister, india, economy

Fiscal Steps Taken By Government Led To Positive Growth Nirmala Sitharaman

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Nirmala Sitharaman, finance minister, india, economy

The minister further said that the gradual unlocking of the economy has eased supply-side disruptions enabling inflation to decline from 7.6 per cent in October, 2020 to 4.1 per cent in January 2021.

Finance Minister Nirmala Sitharaman on Monday said the fiscal measures taken by the government have resulted in positive growth of 0.4 per cent in the third quarter of the current financial year.

The economy is estimated to contract by 8 per cent during 2020-21 due to the impact of the COVID-19 pandemic.

"The fiscal measures taken by Government during 2020-21 have been calibrated to sustain high spending in the economy and assist in its V-shaped recovery, resulting in a positive GDP growth of 0.4 per cent in third quarter of FY 2020-21," she said in a written reply in the Lok Sabha.

The minister further said that the gradual unlocking of the economy has eased supply-side disruptions enabling inflation to decline from 7.6 per cent in October, 2020 to 4.1 per cent in January 2021, mainly on account of decline in food inflation.

"Lower inflation has increased the real purchasing power of the people leaving more money in their hands to spend," she added.

Ms Sitharaman said that the money to spend has further increased under PMGKY and ANB packages through direct benefit and in-kind (food; cooking gas) transfers, emergency credit to small businesses and wage increase for MGNREGA workers, among others.

With regard to lockdown, the minister said the government imposed a strict 21-days nationwide lockdown from March 25, 2020, to contain the spread of COVID-19 and ramp up the health infrastructure with a view to saving lives.

 

 

Source: NDTV

Nirmala Sitharaman, finance minister, india, economy

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