The economy is seeing recovery after the second wave of the COVID-19 pandemic, thanks to targeted fiscal relief, monetary policy, and a rapid vaccination campaign. The Finance Ministry gave this information on Friday.
Finance Minister Nirmala Sitharaman announced eight economic measures worth Rs 6.29 lakh crore last month to boost the economy and mitigate the financial impact of the coronavirus pandemic and lockdown, aimed at providing relief to the common people as well as businesses. Apart from this, the Finance Minister also announced a stimulus package to give relief to the tourism sector.
The Finance Ministry said in its monthly economic review, "The amount of the comprehensive economic relief package brought to mitigate the outbreak of the second wave was Rs 6.29 lakh crore. RBI is making constant efforts to keep the market normal, reforms in various sectors, and boost growth.
The June Economic Survey said consumption is expected to increase with a further increase in employment support under the Atmanirbhar Bharat Rozgar Yojana (ANBRY).
The report further said that the recently announced economic relief package is expected to give more impetus to the cycle of capital expenditure, which includes implementation of the PLI scheme and PPP projects and asset monetization.
The report said that in the first two months of the financial year 2020-21, flexible tax collection by the central government and continued pace of capital expenditure, especially in the road and rail sector, have supported the economic recovery.
According to the report, any third wave of Kovid-19 can be controlled by expanding vaccination and strictly following the guidelines related to Kovid.
On food inflation, the report said inflation would moderate due to a good monsoon, increased Kharif sowing, and relaxation of restrictions by the states.