Centre responds to downturn with steps to boost growth

2 min read
  1. Government has announced a number of economic measures which seeks to revive economic growth through fiscal stimulus.
  2. These measures were brought in the backdrop of the economic slowdown in India.The measures announced are:-
  3. The surcharge announced in the budget on Foreign Portfolio Investors (FPIs) has been withdrawn.This will check the outflow of FPI from India.
  4. The violations of Corporate Social Responsibility(CSR) rules will not be treated as criminal offences.
  5. The government has also decided to expedite capital infusion of ₹70,000 crore of capital infusion in public sector banks.This is aimed at increasing private investment by facilitating greater credit disbursal by banks.
  6. The government has also announced an additional ₹20,000 crore of liquidity to the housing finance companies(HFCs) over and above the ₹10,000 crore earlier announced.
  7. The banks will be asked to link their loan rates to the central bank’s repo rate.This will check incomplete transmission of monetary policy and help buyers to get loans cheaper and faster.
  8. The startup’s will also be relieved as the angel tax has been withdrawn. The angel tax had made it difficult to attract new funding for startups.
  9. The government has also revoked its ban on the purchase of new vehicles by its departments to replace old ones.Further,the vehicles bought till March 31,2020 will be eligible for an additional 15% depreciation.