When asked how the government planned to fund the stimulus package, Sitharaman said that she would give these details, and explain how much the Centre’s own outlay in the overall package would be. “I can say that the increased borrowing will be part of that,” she said.
Last week, the government increased its borrowing programme for FY21 to Rs 12 trillion from Rs 7.8 trillion.
Modi, in an address to the nation on Monday, said the package was equivalent to 10 per cent of India’s gross domestic product, and was aimed at the multitudes out of work and businesses reeling from the impact of the prolonged shutdown.
Opposition leaders and some economists said Wednesday’s measures fell short of expectations as no relief was announced for millions of migrant workers who have lost jobs after the national lockdown.
“There is nothing, absolutely nothing by way of cash transfer to the bottom half of the population (130 million families) who have been pushed into destitution,” said Congress leader P. Chidambaram, a former finance minister.