Money can be put into people’s hands in several forms: FM
NEW DELHI: Finance minister Nirmala Sitharaman said on Sunday the government consciously preferred a route aimed at empowering people rather than doling out cash because it felt that it was better suited to deal with the emergency that the Covid-19 pandemic had triggered.
Talking to TOI after shortly after announcing the last tranche of the Atmanirbhar Bharat package on Sunday, she said that while the government did initially rush money to the most vulnerable section, it felt that the long-term economic consequences of the crisis would be better mitigated by enhancing liquidity as that would help with the reopening of the economy, ensure viability of economic enterprises, and ensure protection of jobs while restoring demand.
The FM also said that the design of the "package" is in line with approach, strengthened under PM Modi, to privilege empowerment over one-time cash handouts, even as she emphasised that the government has energetically provided instant cash assistance through direct benefit transfers to the most vulnerable and needy.
"The fact is money into people’s hands can be in several forms and what we have done is to give it through that route of creation of demand for businesses to get triggered. So we are looking at a way where there so many different ripple effects, multiplier effects which will trigger the economy," Sitharaman said while elaborating on the government’s plans to provide working capital loans and funds for NBFCs.
The FM also said that the government's approach was influenced by the experience of the 2008 financial crisis where an economic stimulus based on careless lending led to a bad loans crisis, double-digit inflation with no gains for the economy.
"Disbursal hasn’t happened but sanction has happened but the money is still with the bank. Now, if the lockdown is lifted and businesses come all right now you release the money, automatically that money will reach the ground," the FM said while responding to a question on banks reluctance to lend and park the funds approved by the government with the RBI.
Most incompetent FM of Independent India
she & her boss are making a fool out of people...please stop this joke in name of stimulus
Just pay for our 14 days mandatory institutional quarantine in 3 star hotel.... that should be good
income tax refunds and loans should not be considered an economic package as there is no cost to government. refunds are right of tax payers and loans (coming from banks without any liquidity infusion) will need to be paid back with interest. so in essence this economic package is worth just 3 lakh crore and not 21 lakh crore.
R Venkatesh Govind
Nirmalajee is very right. Don't pay cash, just announce in media that people have become rich & India has "recovered". It is up to people to believe it.
Seriously, WTF is wrong with this women? Is she trying to compete with Fenku?
India is the only country in the WORLD collecting MORE in the name of pandemic and spending LEAST. Hence the Goli Maro gang said, P荣华彩票登录M sees opportunity even in disaster
Very true. We are only nation that is asking its citizens to pay instead of giving them. We installed the Bhikari as govt.
Poor n common man will get nothing at all
Manmohan is far better PM....
This is like promising a feast next week when one is hungry today ....
Most of houses in my kerala town got extra rations already
Only people working in BJP IT cell are getting paid now.
Most arrogant, irresponsible, insensitive, unfit finance minister ever of independent India.. She ruined economy, modijis reputation.
This lady is n can never be a competent administrator. She is fierce talking fighter like Mamata n cannot administer. She is plain incompetent for the job on hand
Instead of helping poor workers, middle class and farmers, she went on offering loans and credits to corporate
Just put Rs 1000 in my account and I will believe all your actions.
If there were several ways to put money in people's pocket, why was she waiting this long ? Why it was not done on day one of lockdown ? Why million had to starve n go hungry without money ? She just talks !
she is right. no need to put money in the hands of poor. especially whe she expects half the migratory workers will perish during walk back
but a common men requirement is left out . how a labour class people will survive still a question ???
puppet of her Master, who is a brainless man. more of a salesman than PM.
In the entire process, the whole lot of middle class people has been ignored.