Fiscally restrained govt tries new formula to boost festive consumer spend

The government will also give interest-free 50-year loans to the States for capital expenditure of Rs 12,000 crore

Finance Minister Nirmala Sitharaman on Monday announced a two-pronged stimulus package aimed at bolstering capital expenditure and stimulating consumer demand during the upcoming festive season, estimating a Rs 73,000-crore boost by the end of this financial year.

The measures, which signalled the Centre’s fiscally conservative approach towards boosting demand, included giving money into the hands of central government employees, but with strict conditions on spending towards goods and services; a limited hike in its capital expenditure; and paltry interest-free loans to states for funding projects.

“We have kept in mind that the government must not burden the common citizens with