Fiscal measures to compliment monetary measures
Source: Bloomberg, GOI, Angel Broking
The Indian Government has announced a fiscal package of Rs. 170,000 cr. (0.8% of GDP) which
is meant to benefit the poorest of the poor. Some of the key highlights of the package are:
Under the Pradhan Mantri Gareeb Kalyan Ann Yojna (PMGKY), at least 80 cr. poor people
will be provided an additional five kilos of rice/wheat per month.
8.69 cr. farmers will receive the first installment of Rs 2,000 in the first week of April
under the PM – KISSAN scheme
Wages under MNREGA will also be increased by Rs 2000 per worker on an average as
additional income to help daily wage labourers
BPL families will get free cylinders for three months under the Ujjawala scheme as well
For the welfare of building and construction workers, the central government has passed
orders to states to use funds worth Rs 31,000 crore to provide relief.
We believe that this could be the first among a series of measures announced by the
Government and we expect more stimulus measures announced by the Government