FM Nirmala Sitharaman says govt willing to give more stimulus if required

Amid a rising number of novel coronavirus cases in India and its ensuing onslaught on the economy, the Centre is willing to give more stimulus to various sectors hit due to Covid-19, Finance Minister Nirmala Sitharaman said in an interview with The Indian Express.

The Modi government had announced a Rs 20 lakh crore stimulus package in May 2020 to subdue the effects of the pandemic on the economy. Sitharaman said that the emergency liquidity guarantee was expanded from MSMEs to cover proprietorships, partnerships and even individual professionals. Even the funding of NBFCs was increased and banks were given more liquidity, she said.

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Sitharaman said that she wasn't closed to the option of spending further. "I am not closed (on) the option… doing all this, we have kept ourselves open to the idea of… in case, there is any need for further stimulus," she told the publication.

When asked about risk aversion on pushing expenditure this year, the finance minister denied any such tendencies.

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Sitharaman further said that India has the tool of Direct Benefit Transfer (DBT), an instrument that no other country has, and that the government wasn't worried about whether the money will reach the person who needs the benefit.

When asked about the lack of spending from Jan Dhan accounts, she said the additional Rs 2,000 for farmers that was released is reaching people. "Otherwise why do you think the rural economy is all robust?" she asked.

Stressing that businesses in rural areas are doing well, she said that tractor sales, agriculture equipment sales, have gone up in these areas.