Govt's Rs 2 trn package will provide limited benefits: Subhash Chandra Garg

The economic package announced by the Centre is above Rs 20 trillion but the immediate delivery or aid is quite limited and less than 10 per cent while its benefits will also be limited, said former Union Finance Secretary Subhash Chandra Garg.
Speaking to ANI, Garg said, "There are three major aims of this economic package. First that the economic growth should come back on track, second to revive the businesses and third…a large number of people became jobless due to the lockdown. There are over 10 crore people who lost their jobs out of which many of them are migrants who are trying to return home."
"The objective of economic stimulus is to achieve these three goals. Its component should have been more from the fiscal side. More aid should have been provided by the government. The fiscal component is the smallest while the liquidity component is the largest, which is above Rs 10 trillion. I don't think it helps a lot to achieve these three objectives," he added.
He added that government support is about Rs one and a half to a quarter to two trillion, which is relatively smaller than it should have been.

"The component of the credit will be to see how the banks will give it. The package is above Rs 20 trillion but the immediate delivery or aid is quite limited and less than 10 per cent. Its benefits will be limited, it does not appear to achieve the objective in lieu of the damage done," he added.