COVID-19: Amid rising coronavirus cases, no new schemes for a year, says Finance Ministry

Alphonse Joseph

New Delhi, June 05: Union Finance Ministry on Friday said that the government would not start any new scheme for a year as a weeks-long lockdown to contain the coronavirus spread played havoc with India's economic growth and finances.

According to reports, Ministries have been asked to stop sending requests for new schemes to the finance ministry. Spending would only be allowed in the Prime Minister Garib Kalyan Yojana and measures announced under the Atmanirbhar Bharat policy to boost domestic business.

Coronavirus: Study reveals young COVID-19 patients are subjected to risk of stroke

The government has announced a cumulative stimulus package of Rs 20 lakh crore, which is nearly 10 per cent of the country's gross domestic product (GDP) to provide relief to various segments of the coronavirus-hit economy.

On May 28, Finance Minister Nirmala Sitharaman reviewed the state of the economy at the meeting of the Financial Stability and Development Council (FSDC), in view of disruptions caused by the COVID-19 pandemic. This was the first meeting of the FSDC, the apex body of sectoral regulators headed by the finance minister, since the coronavirus outbreak.

SC admits plea seeking cap on fees to be charged for COVID-19 patients

The 22nd meeting of the council, held via video conferencing, assumes a greater significance considering that the economy is expected to contract by 5 per cent by some estimates amid the virus crisis. The FSDC, which also comprises RBI Governor and other financial sector regulators, underlined the need to continue with measures to address the liquidity and capital requirements of the financial sector.

Also Read:

SC wants Finance Ministry’s views on interest waiver

Growth rate of COVID-19 cases in Mumbai comes down

Gujarat Rajya Sabha Polls: BJP eager to avenge 2017 humiliation