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M Govinda Rao: Fiscal stimulus at the state level now

State economies too need stimulus

One area where a fiscal stimulus package still needs to be worked is at the state level. The New Year has begun with yet another instalment of monetary stimulus from the RBI and fiscal stimulus from the Government of India. The second instalment of fiscal stimulus announcement comes a month after the first, and this time in tandem with the RBI’s easing of monetary policy announcements. The major monetary policy measures include reduction in the CRR by 50 basis points, reduction in the Repo and Reverse Repo rates each by 100 basis points. The important among the fiscal stimulus ...