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Dec 21, 2019 | Blogs | Banking

Government to increase consumption for boosting economic growth

Government to increase consumption for boosting economic growth

Chief Economic Advisor of India, Krishnamurthy Subramanian said that the government is concentrating on increasing the consumption of goods and services so that the economy can nurture. He put forward the efforts like the corporate tax cutting meant to improve the risk-return of corporate companies. He presented the measures of the current government for the past months to elevate the economy of India from a six-year stagnant low growth.

He announced about the capitalisation of public sector banks and providing last-stretch funds to the realty projects who were facing financial crunch. Rs. 4.47 lakh crores have been sanctioned to the NBFCs (Non-Banking Financial Institutions) and Housing Finance Companies in support of their retail lending. He reflected about 17 proposals summing up to Rs. 7657 crores that have been approved under the scheme of partial credit guarantee. In addition to that, 66% of budgeted capex of Rs. 3.38 lakh crore has already been undertaken.

Economic Advisor also said that Railway & Road ministries have undertaken a capex of Rs. 2.46 lakh crore till December 31. He further added that more than 8 lakh repo-linked loans amounting to Rs. 70,000 crores have already been sanctioned till last week of November. 

For the betterment of public sector banks, Rs. 60,314 crore of capital has been permeated into PSU banks. Rs. 2.2 lakh crore have been disbursed by the lenders to corporates and a sum of Rs. 72,985 crores to MSME sector entities.

Now the hope is that what is the purpose of this declaration. The further lendings and huge amounts of sum issued to the above said sectors will really grow the economy of this nation.

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