Rs 4.5 lakh-crore fiscal support need of hour, Ficci tells FM
New Delhi, May 11
‘ CREATE SELF-SUFFICIENCY FUND’
- Ficci also made a case for the need to create a self-sufficiency fund for innovation, construction and manufacturing clusters to make use of the emerging opportunities in the wake of disruption in global supply chain
- The fiscal support sought includes “small amount” of Rs 10,000 crore towards proposed Covid-19 liquidity bridge required to give comfort to banks to restructure/provide additional loans to large companies whose balance sheets have been impaired due to the virus outbreak
Seeking immediate support for the Indian economy hit by Covid-19, industry body Ficci said an additional fiscal support of Rs 4.5 lakh crore is required at the current juncture besides a quick release of Rs 2.5 lakh crore stuck in refunds and other government payments.
In a letter to Finance Minister Nirmala Sitharaman, Ficci president Sangita Reddy also made a case for the need to create a self-sufficiency fund for innovation, construction and manufacturing clusters to make use of the emerging opportunities in the wake of disruption in global supply chain.
The fund can be provided in tranches in the medium term, she said. Seeking an “immediate support”, Reddy said the problem being faced is largely that of liquidity, and immediate release of money stuck in refunds and other government payments to the tune of Rs 2.5 lakh crore will immensely help tide over the crisis.
“This may have already been provided for in the Budget,” she said.
Further, additional fiscal support is required for vulnerable communities over and above the sum provided for in the Garib Kalyan Yojana announced earlier.
Fiscal support is also needed for MSMEs in order to help them get back on track. Besides, funds are needed for upgrade of healthcare infrastructure to effectively deal with the current situation and for support to sectors like aviation and tourism that have been hit hard due to the lockdown.
“Additional fiscal support required at the current juncture for this purpose is about Rs 4.5 lakh crore,” the letter said.
The fiscal support sought includes “small amount” of Rs 10,000 crore towards proposed Covid-19 liquidity bridge required to give comfort to banks to restructure/provide additional loans to large companies whose balance sheets have been impaired due to the virus outbreak, it added. — PTI
