ECONOMY

India Economy – Fiscal Cost Of New Stimulus Measures Likely To Be 0.3% Of GDP: ICICI Securities

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

On June 28, 2021, the Finance Minister Nirmala Sitharaman announced a fresh round of stimulus measures to support the economy after the second wave of Covid-19.

The measures consist of three pillars: ‘economic relief’, ‘health’ and ‘impetus to growth and employment’.

While the announced size of the package was ~Rs 6.3 trillion (or ~2.8% of nominal gross domestic product in FY22), the actual fiscal outgo in FY22 is likely to be ~Rs 684 billion (~0.3% of GDP).

Our analysis of the measures shows that ‘economic relief’, ‘health’, and ‘impetus to growth and employment’ pillars account for 60%, 2% and 38% of the total announcements.

However, in terms of fiscal outgo, they account for 0%, 22% and 78% respectively.

Click on the attachment to read the full report:

ICICI Securities Stimulus Fiscal Impact June 2021.pdf

DISCLAIMER

This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Most Related Links :
reporterwings Governmental News Finance News

Source link

Back to top button