No new govt schemes will start for a year, as the Finance Ministry told today, in a move to tighten spending amid rising corona virus cases. All of the ministries have also told to stop sending the requests for the new schemes to the finance ministry. Spending only be allowed in the Prime Minister’s Garib Kalyan Package and also the announcements made under the Atmanirbhar Bharat package. No other scheme will be approved this financial year, as told by the ministry. “It may be appreciated that in the wake of the COVID-19 pandemic, there is unprecedented demand on public financial resources and a need to use resources prudently in accordance with emerging and changing priorities,” source got from a finance ministry note.
Schemes are already been approved under the Budget will also stay suspended till 31st March. The note also told any exception to those new rules that would need to be approved by the Department of Expenditure. The govt’s move comes after a series of grim economic indicators, including the slowest GDP growth in 11 years and predictions of an economic contraction in more than four decades. India’s credit rating moved 1 step closer to junk after the Moody’s Investors Service that downgraded the nation to the lowest investment-grade level.
Last month, Finance Minister Nirmala Sitharaman had told future fiscal policy schemes actions to stimulate the economy would depend on how COVID-19 pandemic situation pans out.
The govt has also announced around Rs 20.97 lakh crore economic package, that includes Reserve Bank of India’s around Rs 8.01 lakh crore worth of the liquidity measures 17th till May.
The country has seen record spikes in the number of corona virus cases over the past some days. In the biggest daily rise, India recorded around 9,851 cases and also 273 deaths in the last 24 hours. The number of cases in the country has climbed to around 2,26,770. India is now the 7th worst-hit nation after the US, Brazil, Russia, the UK, Spain, and Italy.