The government recently announced its plans to borrow 54% or a little over Rs 4 lakh crore more than budgeted estimates of Rs 7.8 lakh crore.

Finance Minister Nirmala Sitharaman may announce a massive economic stimulus package worth Rs 3 lakh crore later this week, according to a report in the Business Standard.

Other ministries are also expected to offer revival packages for their respective sectors.

The spending on all the initiatives put together is expected to rival that offered by G-20 nations in terms of percentage of GDP.

Moneycontrol could not independently verify the report.

The government was earlier considering a measured approach to deal with the situation despite mounting pressure from industries.

Government officials pointed out that one of the reasons for the change in stance could be the wiggle room provided by the increase in proposed borrowing for FY21 to Rs 12 lakh crore from Rs 7.8 lakh crore.

Another reason might be the increasing uncertainty on how “deep the economic slump is and could be”. The government may also want to support small businesses as the economy gradually opens up.

The official added that the “next set of announcements” would be massive compared to the previous Rs 1.7 lakh crore package announced by the Finance Minister.

Source & Courtesy: moneycontrol.com