Government considers financial stimulus to economy

The Union government is said to be considering to provide some financial stimulus to the economy in wake of slowing growth post demonetisation, transition to the Goods and Services Tax (GST) and tepid private investment, according to reports by television channels.

Pulled down by sluggish manufacturing, growth in the Indian economy during the first quarter of this fiscal fell to 5.7 per cent, clocking the lowest GDP growth rate under the NarendraAModi dispensation.

Chief Statistician T.C.A. Anant had said the slowdown in the first quarter to 5.7 per cent was due to de-stocking by firms as caution ahead of the GST roll-out on July 1.

The reports said that the government is considering measures, both in the short and medium term which are likely to be presented in the Union Budget 2018-19, to boost exports, create jobs and narrow down the trade deficit.

However, there has been no official confirmation on the same.

The government may also look at resolving some of the top non-performing assets (NPAs) or bad loan cases to improve the twin balance sheet scenario of banks and corporates.

According to data from the Central Statistics Office (CSO), India's gross domestic product (GDP) for the first quarter at Rs 31.10 lakh crore grew 5.7 per cent over the same quarter last year. During January to March, 2017, the GDP had grown by 6.1 per cent.

--IANS

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