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No change in government's borrowing programme for current fiscal, DEA Secretary

The government on Monday said there will be no change in the borrowing programme for the current fiscal, even as it announced steps to stimulate consumer demand during the festival season. The government in May had increased its market borrowing programme for the current financial year by more than 50 per cent to Rs 12 lakh crore to meet the increased spending due to the COVID-19 pandemic. As part of its efforts to stimulate the economy, Finance Minister Nirmala Sitharaman announced a slew of measures to spur demand and ramp up capital expenditure.

Sitharaman said Rs 36,000 crore additional consumer demand will be created (Rs 28,000 crore through LTC voucher scheme plus Rs 8,000 crore through festival advance scheme). Also, Rs 37,000 crore of additional central and state capital expenditure will be incurred. Total boost to demand is estimated at Rs 73,000 crore by March 31, 2021, she added.

News source ~ Economic Times