Second package to boost economy in next few days: Montek

Second package to boost economy in next few days: Montek

New Delhi: The government will come out with a second stimulus package for this fiscal and one for 2009-10 in the next few days to spur economic growth, reeling under the impact of global financial crisis.

“We are trying to coordinate a number of different steps. And I hope in the next few days we will be ready to make an announcement (about the second stimulus package)," Planning Commission Deputy Chairman Montek Singh Ahluwalia told reporters here in New Delhi.

He said there were different things coming from different people and that they were referred to cabinet secretary KM Chandrasekhar.

“I am hoping that we will get something. I can assure you that the main thing is to make sure that expenditure we have already provided and the new expenditure, gets done. In the Planning Commission, we are not proposing any new expenditure for the current year," Ahluwalia said.

With industrial production contracting by 0.4% in October, for the first time in 15 years, and the exports declining by over 12% during the month, the government came out with a stimulus package on 7 December to spur growth and help the industry combat the impact of global financial meltdown.

As part of the stimulus package, the government cut excise duty by 4% across the board, except on petroleum products, and announced raising of the public expenditure by Rs20,000 crore to boost demand.

The government has also increased public expenditure by Rs1.47 lakh crore through two supplementary demands for grant over Rs7.5 lakh crore provided in the Budget for 2008-09.