The finance ministry on Friday has come clear with its plans on Friday. As per the information from the finance ministry, this year government would not announce any new scheme. No schemes related to the budget 2020-21 would be rolled out this year. This is to cut new expenditure amidst times of crisis. Schemes from the budget that are already approved would also not be rolled out.
Also, other ministries are told to stop sending requests for new schemes to the finance ministry. Since the COVID-19 cases are going to rise in the country the government wants to use the available resources in a targeted manner. Spending would take place only under the Prime Minister’s Garib Kalyan Package and the announcements made under the Atmanirbhar Bharat package.
“It may be appreciated that in the wake of the COVID-19 pandemic, there is an unprecedented demand on public financial resources and a need to use resources prudently in accordance with emerging and changing priorities“, said a note from the ministry.
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The move comes when there is slowest GDP growth in 11 years and predictions of an economic contraction in more than four decades are there. The economy of India which was in poor health has been given a death push by COVID-19. At present, the country sits at 7th spot in the world.