Govt. unveils ₹6.28 lakh cr stimulus post second COVID wave

Focuses on loan guarantees, concessional credit for pandemic-hit sectors, healthcare infra.

Finance Minister Nirmala Sitharaman on Monday announced some fresh relief measures for the economy, the first such package after the second COVID-19 wave, focusing largely on extending loan guarantees and concessional credit for pandemic-hit sectors and investments to ramp up healthcare capacities. The government pegged the total financial implications of the package, which included the reiteration of some steps that were already announced such as the provision of food grains to the poor till November and higher fertiliser subsidies, at ₹6,28,993 crore. Economists, however, noted that the elements of direct stimulus in the package and its upfront fiscal costs in 2021-22, are likely to be limited. More stimulus steps may be needed to shore up the economy through the rest of the year, they said.