FM Nirmala Sitharaman remarks Stimulus 2.0 aimed at a 'greater multiplier effect'

Union Finance Minister Nirmala Sitharaman has stated that the second stimulus - Aatmanirbhar Bharat Package - is aimed at a 'greater multiplier effect' and that it is for the banks to meet the fixed cost expenditure and for working capital. The second economic package announced by PM Modi is stated to worth at Rs 20 lakh crores and the Finance Minister had given a detailed break up of the package earlier. 

In an interview with ANI, Sitharaman remarked that it was important to give stimulus for businesses to start off. She highlighted that through the PM Garib Kalyan Scheme which was introduced right after the lockdown, the Centre had provided certain cash transfer. 

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Speaking about the limited cash transfer in the second stimulus, Sitharaman said, "For cash transfer, we thought it was far more effective because the way in which we have planned it, we thought there will be a greater multiplier effect, and therefore, it should be through banks, businesses for meeting the fixed cost expenditure. It should be money which is given for working capital, it should also be money for loans so that they can buy raw materials."

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Aatmanirbhar Bharat Package

Finance Minister Nirmala Sitharaman had announced the fifth and final tranche of Stimulus 2.0 on Sunday. The financial package of Rs 20 lakh crores as announced by PM Modi in his address to the nation last Tuesday is meant to provide a boost to the economy which has been impacted due to the Coronavirus crisis and consequent lockdown.

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Major reforms and measures announced under the second stimulus include Rs. 3 lakh crore collateral-free automatic loans for business, Global tenders to be disallowed up to Rs. 200 crore, One nation one ration card in three months, Rs 5000 Credit facility for street vendors, and Corporatisation of Ordnance Factory Board. Read the full breakup of Stimulus 2.0 here.

(Image Credits: PTI)