The government is open to further measures to boost the economy hit by the second wave of the coronavirus pandemic, says Chief Economic Advisor (CEA) KV Subramanian.
However, he added that the call for a new stimulus package needs to be taken into account against the background of a multitude of initiatives that Finance Minister Nirmala Sitharaman took in her budget for 2021-22 presented in February.
The Chief Economic Advisor responded to a suggestion from some industry associations that the government must pass a stimulus package of Rs 3 lakh crore to boost the economy, which was badly hit by the second wave of the coronavirus pandemic in April-May.
According to a Reserve Bank assessment, the second wave cost the nation about 2 lakh crore in terms of lost output.
“Like last year, we remain very open to further action … but I think it’s really important to take into account the big differences between last year and this year when we talk about the incentives,” he said
First published: IS