More liquidity needs to be pumped in the market to boost the coronavirus-hit economy and states should come forward with Rs 20 lakh crore, while another Rs 10 lakh crore can be harnessed from public-private investment, Union Minister Nitin Gadkari said on Tuesday.
The road transport, highways and MSME minister said these measures, including the Rs 20 lakh crore package announced by the Centre, would result in Rs 50 lakh crore liquidity in the market to battle the adverse impact of the novel coronavirus pandemic on the economy.
"The present situation is very serious... The entire world is facing problem," Gadkari said.
Gadkari pointed out that the US had declared a package of $2 trillion to battle the crisis, while Japan has announced 12 per cent of the GDP and Prime Minister Narendra Modi had announced a package that is equal to 10 percent of the GDP.
"Now, more resources can be harnessed and states can provide for another Rs 20 lakh crore budget and a minimum of Rs 10 lakh crore can come from the public-private investment, which adds to Rs 50 lakh crore to accelerate the wheel of the economy," Gadkari said.
The country is facing serious problems, business are closed and unemployment is growing. All sections of society—whether migrants, media, businesspersons or employees—are facing problems, but ultimately "we will win the economic war" and the "corona war”, he said.
Efforts are on to develop a vaccine for the coronavirus, Gadkari said, adding that and "we will have to learn the art of living with coronavirus”.
The Centre had announced a Rs 20 lakh crore economic stimulus package, including Rs 8.01 lakh crore of liquidity measures announced by the Reserve Bank since March.
The five-part stimulus package comprised Rs 5.94 lakh crore in the first tranche that provided credit line to small businesses and support to shadow banks and electricity distribution companies.
The second tranche included free foodgrain to the stranded migrant workers for two months and credit to farmers, totalling Rs 3.10 lakh crore.
Spending on agriculture infrastructure and other measures for agriculture and allied sectors in the third tranche totalled to Rs 1.5 lakh crore.
The fourth and fifth tranches dealt mostly with structural reforms and totalled to Rs 48,100 crore.
