Government's Final COVID-19 Stimulus Package Likely In September-October, Says RBI Director

RBI Director S Gurumurthy said the central bank has not yet taken any view on monetising deficit

Government's Final COVID-19 Stimulus Package Likely In September-October, Says RBI Director

RBI Director S Gurumurthy said final COVID-19 package is expected in September-October

The Centre is likely to announce the final stimulus package in the "post-COVID era" in September or October, RBI Director S Gurumurthy said on Tuesday. Speaking at a webinar organised by the Bharat Chamber of Commerce, Gurumurthy said the package of more than Rs 20 lakh crore announced by the central government can be described as an interim measure. "The final stimulus package is expected to be announced in the post-COVID era which may be in September or October," the RSS ideologue said.

The chartered accountant said India has come up with the package using money generated by the economy. "Unlike the European nations and the US, which have been printing money by monetising deficit, there is little scope for India to do that," he said.

Gurumurthy said the central bank has not yet taken any view on monetising deficit.

"India is now facing diverse problems. The government has deposited Rs 16,000 crore in the Jan Dhan bank accounts from April 1 to May 15. "It is surprising to note that there has been little withdrawal from those deposits. This only shows that the level of distress is not to that extent," Gurumurthy said.

He added that in the post-COVID era, the world will shift from "multilateralism to bilateralism", and revival of the Indian economy will be faster.

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