October 12, 2020
Government’s proposals to enhance consumer demand, boost capital expenditure, foster private sector spending and stimulate GDP highly encouraging: PHD Chamber
Shri Sanjay Aggarwal, President, PHD Chamber of Commerce and Industry while appreciating the significant proposals announced by Hon’ble Finance Minister said in a press statement that calibrated and meaningful measures will have a multiplier effect on trade, industry and economy. These measures will stimulate the consumer demand, boost capital expenditure and push the economic growth trajectory on the pre-COVID levels in the coming quarters.
The announcement on LTC Cash Voucher Scheme through which Government employees can opt for cash payments in lieu of LTC during 2018-21 and spend it to buy goods and services worth 3 times the fare and 1 time the leave encashment are highly inspiring as these measures will generate an additional consumer demand of Rs 28,000 crore, said Shri Sanjay Aggarwal.
The decision of one time restoration of the Festival Advance to the Government employees will enhance the consumer spending, which is likely to generate Rs 8,000 crore additional consumer demand in the country, said Shri Aggarwal.
The Festival Advance with increased limit of Rs 10,000 to all Government employees, irrespective of the designation, in form of a pre-paid Rupay Card will boost the sales of the business firms and sentiments of the producers to produce more with the deployment of more workforce in their respective businesses, said Shri Aggarwal.
The Government’s proposals to enhance capital expenditure in the country is highly appreciating as this will have a multiplier effect on the growth of trade, industry and economy; creating employment opportunities for the workforce, he said.
The historical announcement for the states will boost economic growth trajectory of the States also as the Government has offered to provide a 50 year interest free loan of Rs 12,000 crore for capital expenditure by the states. This comprise of Rs 2,500 crore for North East States and Uttarakhand and Himachal; Rs 7,500 crore for other states and; Rs 2,000 crore for those states which meet at least 3 out of 4 reforms given in Atmanirbhar fiscal package, said Shri Aggarwal.
This will encourage states to implement reforms sooner than later in an effective manner and help them in resuming the work on projects, which were stalled due to lack of funds. Also, this provision will motivate states to start new capital projects and thereby enhance the infrastructural development in their respective territories, said Shri Aggarwal.
The proposed allocation of Rs 25,000 crore for capital expenditure on roads, defence infrastructure, water supply, urban development and domestically produced capital equipments will give a big push to industrial and social development in the country and will lead to a self-reliant New India with tremendous employment opportunities for the growing young workforce in the country, said Shri Aggarwal.
The commendable ideas behind these proposals to create an additional consumer spending of Rs 1 lakh crore in the country without the burdening the common citizen under the ambit of controlled inflation and Government debt are highly laudable and encouraging, he said.
These measures have a great potential to give a turnaround to the economy sooner than expected, said Shri Sanjay Aggarwal.
Ends Media Division PHD Chamber of Commerce and Industry