Stimulus package: Govt may stick to Rs 12-trillion market borrowing target

Fertiliser subsidy will be biggest cost head at Rs 65,000 crore. Housing for all under PM Awas Yojana will cost an extra Rs 18,000 cr

The stimulus package announced on Thursday may cost the exchequer Rs 1.19 trillion in the current financial year (FY21).

The amount will be spent under eight heads — housing for all in urban areas, rural employment, research and development grant for Covid-19 vaccine, industrial and domestic equipment incentives, support for EXIM Bank, fertiliser subsidy, equity infusion in the National Investment and Infrastructure Fund (NIIF) and employment scheme.

Fertiliser subsidy will be the biggest cost, at Rs 65,000 crore, while housing for all in urban areas under the PM Awas Yojana will cost an extra Rs 18,000 crore.

“Overall, we peg the fiscal cost