Economic stimulus includes Rs 8 trillion liquidity measures by RBI: FM

Finance Minister Nirmala Sitharaman on Sunday said the Rs 20 trillion economic stimulus package to deal with the fallout of Covid-19 includes Rs 8.01 trillion of liquidity measures announced by the Reserve Bank since March.

The stimulus totals to Rs 20.97 trillion, she said, adding this also comprises the Rs 1.92 trillion package of free foodgrain and cooking gas to poor and cash to some sections announced in March, news agency PTI reported.

The five part stimulus package announced beginning May 13 comprised Rs 5.94 trillion in the first tranche that provided credit line to small businesses and support to shadow banks and electricity distribution companies.

The second tranche included free foodgrain to stranded migrant workers for two months and credit to farmers, totalling Rs 3.10 trillion.

Spending on agri infrastructure and other measures for agriculture and allied sectors in the third tranche totalled to Rs 1.5 trillion.

The fourth and fifth tranches that dealt mostly with structural reforms totalled to Rs 48,100 crore, she said.