Stimulus 2.0 to push fiscal deficit to 9.5 per cent of GDP: SBI report

The new schemes which will put an additional burden of Rs 40,000 crore on the government form 0.21 per cent of the GDP

A day after Finance Minister Nirmala Sitharaman announced schemes to boost consumer spending hit by the coronavirus lockdown, the State Bank of India's Ecowrap pointed that the announcement is set to push the fiscal deficit to 9.5 per cent of the GDP. 

The new schemes which will put an additional burden of Rs 40,000 crore on the governmen. 

Sitharaman announced the LTC Cash Voucher and Festival Advance Schemes to encourage government employees to spend more and boost demand in the economy.

The report authored by Dr. Soumya Kanti Ghosh, Group Chief Economic Adviser, State Bank of India says that the