New Delhi: Dhruv Rathee explained the details of the recently announced economic package of Rs. 20 lakh crore.
Govt clubbed monetary package with fiscal package: Rathee
He said that the Central Government has clubbed Rs. 8 lakh crore monetary package with Rs. 12 lakh crore fiscal package to claim it as an economic package.
Rathee said that most countries in the world never counts monetary package in an economic package.
Monetary package is given by Central Bank of the country, in case of India it is Reserve Bank of India. It increases liquidity in the market by infusing cash. It is done by decreasing Repo Rate thereby making loans available for banks at cheaper rates.
Monetary policy has negligible impact on common person.
Out of 12 lakh crore of fiscal package, much of it is given in the form of loan or credit.
Citing various reports, Rathee said that the real stimulus amount is between Rs. 1 lakh crore and 2.7 lakh crore.
KCR slams Central Govt. over stimulus package
Terming its Rs 20 lakh crore stimulus package as a “blatant fraud”, Telangana Chief Minister K. Chandrashekhar Rao on Monday slammed the Centre for treating states as its subordinates and beggars.
Abhijit Banerjee’s suggestion
It may be noted that earlier, Nobel laureate Abhijit Banerjee said, “Give money in the hands of everybody, so that they can buy from stores or they buy consumer goods. So MSME produces a bunch of stuff that people will want” said Banerjee.