New Delhi, May 15: A report from the State Bank of India said that the stimulus packages announced by the Centre to mitigate the economic impact of COVID-19 will dent the fiscal deficit by 0.6 per cent of the GDP or Rs 1.29 lakh crore in the ongoing financial year.
With the announcement of an economic package concerning vulnerable sections of the society on Thursday, the Central government has so far provided a stimulus total of Rs 16.45 lakh crore. This implies that the remaining nearly Rs 3.54 lakh crore of the Rs 20 lakh crore package announced by Prime Minister Narendra Modi on May 12 is yet to be announced.
"All in all, the direct fiscal hit after the announcement of three packages is only 0.6 per cent of GDP at approximately Rs 1.29 lakh crore. However, support has been provided to the needy by facilitating their access to food and credit," SBI's 'Ecowrap' report said.
"Of the total announcement of Rs 3.16 lakh crore (on Thursday), the total cash outlay for the Government will be around Rs 14,500-14,750 crore. The impact of Thursday's package on fiscal deficit is expected to be a minuscule at 0.07 per cent of GDP," the report further added.
The report also said the recent crisis has shown how important it is for a huge country like India to have an infrastructure which promotes inter-operability between states and the Centre.
"The mission mode implementation of 'One Nation One Ration Card' is a step in the right direction. So is making available the portability of welfare benefits for migrant workers and those having no ration card. The changes in labour laws that are being mulled over in Parliament if implemented properly could bring positive changes in the status of the labourers in this country," it said.
The report also stressed that the Centre and thet states should work together in order to achieve these objectives within the mandate of overall labour welfare. According to the Economic Survey of India 2017, the magnitude of inter-state migration in India was close to 9 million annually between 2011 and 2016, while Census 2011 pegs the total number of internal migrants in the country at a staggering 139 million.