New Delhi, Sep 21: For those waiting for the proverbial 'acche din', there's something to cheer about. After coming in sharp criticism for economic slowdown and joblessness, the government is planning a major stimulus to boost the economy with the next general elections approaching fast.
The total economic booster package could be in the range of Rs 50,000 crore, news agency Reuters reported. The government, report says, has made up its mind to forego fiscal deficit concerns and spend more to give a fillip to the sagging economy. Finance Minister Arun Jaitley on Wednesday had hinted of a stimulus package, without putting any numbers to it.
India' growth rate slowed to a 3-year low of 5.7 percent in Apr-June the quarter.Wuth the planned extra spending the fiscal deficit for the financial year may reach 3.7% of the GDP against the budget target of 3.2%.
The government hopes that the extra spending will spur demand and create jobs in the urban areas too. On the other hand, part of the extra spending will go into creating jobs and houses the in rural areas
Government fears a revenue shortfall of Rs 8,58,000 crore in the year 2017-18 if the economy fails to pick up soon