Lok Sabha Question No. 3180 (UNSTARRED), answered on 2021-03-15
Subject: Financial Package
Ministry: FINANCE
Asked by: Manish Tewari

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF ECONOMIC AFFAIRS

## LOK SABHA UNSTARRED QUESTION NO. 3180

TO BE ANSWERED ON MONDAY, MARCH 15, 2021 / PHALGUNA 24, 1942 (SAKA)

## 'FINANCIAL PACKAGE'

## 3180:   SHRI MANISH TEWARI:

Will the Minister of FINANCE be pleased to state:

- a. the total quantum of the financial package announced and operationalised by the Government to bail out the economy in the wake of COVID-19;
- b. the exact quantum of the monetary component of the said Package;
- c. the  manner  in  which  the  Indian  financial  stimulus  is  compared  with  the  financial  stimulus given by the US , China , Russia , Germany , France, Britain, Brazil and South Africa;
- d. the exact monetary component of the said packages respectively;
- e. the  extent  to  which  the  Indian  financial  stimulus  has  helped  to  revive  the  Indian  economy along with the details of quantification, sector wise; and
- f. whether  the  proposed  1.9  Trillion  Dollar  US  Stimulus  Package  by  the  newly  elected  US President will have any impact on the Indian economy and if so, the details thereof?

## ANSWER MINISTER OF STATE (FINANCE) (SHRI ANURAG SINGH THAKUR)

(a)   to  (d):  The  Government of India had announced AatmaNirbhar Bharat Packages (ANB) 1.0, 2.0, and 3.0 on 13 th May, 2020 to 17 th May, 2020, 12 th October, 2020 and 12 th November 2020 respectively with the objective of fighting COVID-19 and to make the country self-reliant. Total financial impact of ANB including measures taken by RBI was estimated to about Rs. 27.1 lakh crore, which amounts to more than 13% of GDP.  Besides, a Rs.1.70 Lakh Crore relief package under the Pradhan Mantri Garib Kalyan Yojana (PMGKY) was also announced on 26.03.2020 to help the poor in the battle against Corona Virus.  It inter-alia comprised of schemes like (a) release of Rs. 1000/- each to 3 crore aged widows and people in Divyang category (b) Additional allocation of food grain @ 5 kg per person  per  month  &  1  Kg  pulse  free  of  cost  to  every  family  covered  under  the  targeted  public distribution  system  (c)  free  of  cost  gas  cylinders  to  Ujjwala  beneficiaries  (d)  Ex-gratia    payment  of Rs.500  per  month  for  three  months  to  20.40  crore  (approx)  PMJDY  women  account-holders  (e) Comprehensive Insurance Scheme for health workers (g) Release of 24% of the monthly wages into PF accounts  of  wage-earners,  earning  below  Rs.  15,000  per  month,  in  businesses  having  less  than  100 workers, for three months.  A statement indicating financial stimulus given by the US, China, Russia, Germany, France, Britain, Brazil and South Africa and their monetary component is at Annexure-I.

(e) & (f):   The stimulus provided by the Government has led to a V-shaped recovery of the economy, resulting  in  a  smaller  contraction  of  Gross  Domestic  Product  (GDP)  growth  of  7.3%  in  the  second quarter  and  positive  GDP  growth  of  0.4%  in  the  third  quarter  of  FY  2020-21  as  in Annexure-II . Additional stimulus in advanced economies (AEs) will have favourable spill- overs to trading partners and  capital  flow  spill-overs  to  emerging  market  economies  (EMEs)  including  India  as  business sentiment improves and risk appetite intensifies.

*****

## Statement referred to in reply to parts  (a) to (d) of LSUSQ No.3180 for answer on 15.03.2021

| Quantum of key fiscal measuresgovernments have announced ortaken in selected economies in response to the COVID-19 pandemic as of December 31, 2020   | Additional spending or foregone revenues   | Accelerated spending / deferred revenue   | Liquidity support   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------|-------------------------------------------|---------------------|
| Country                                                                                                                                               | USD billion                                | USD billion                               | USD billion         |
| France                                                                                                                                                | 198                                        | 63                                        | 405                 |
| Germany                                                                                                                                               | 418                                        | -                                         | 1054                |
| United Kingdom                                                                                                                                        | 441                                        | 9                                         | 437                 |
| United States                                                                                                                                         | 3503                                       | 18                                        | 510                 |
| Brazil                                                                                                                                                | 118                                        | 39                                        | 88                  |
| China                                                                                                                                                 | 711                                        | 232                                       | 193                 |
| Russia                                                                                                                                                | 42                                         | 6                                         | 22                  |
| South Africa                                                                                                                                          | 16                                         | 3                                         | 12                  |

## Annexure-II

## Statement referred to in reply to parts  (e) & (f) of LSUSQ No.3180 for answer on 15.03.2021

| Table 1: Quarter-wise growth of Gross Value Added (GVA) and GDP at Constant(2011-12) Prices (percent)   | Table 1: Quarter-wise growth of Gross Value Added (GVA) and GDP at Constant(2011-12) Prices (percent)   | Table 1: Quarter-wise growth of Gross Value Added (GVA) and GDP at Constant(2011-12) Prices (percent)   | Table 1: Quarter-wise growth of Gross Value Added (GVA) and GDP at Constant(2011-12) Prices (percent)   |
|---------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------|
|                                                                                                         | FY 2020-21                                                                                              | FY 2020-21                                                                                              | FY 2020-21                                                                                              |
|                                                                                                         | Q1                                                                                                      | Q2                                                                                                      | Q3                                                                                                      |
| Agriculture, forestry &fishing                                                                          | 3.3                                                                                                     | 3                                                                                                       | 3.9                                                                                                     |
| Industry                                                                                                | -35.9                                                                                                   | -3                                                                                                      | 2.7                                                                                                     |
| Mining &quarrying                                                                                       | -18                                                                                                     | -7.6                                                                                                    | -5.9                                                                                                    |
| Manufacturing                                                                                           | -35.9                                                                                                   | -1.5                                                                                                    | 1.6                                                                                                     |
| Electricity, gas, water supply &other utility services                                                  | -9.9                                                                                                    | 2.3                                                                                                     | 7.3                                                                                                     |
| Construction                                                                                            | -49.4                                                                                                   | -7.2                                                                                                    | 6.2                                                                                                     |
| Services                                                                                                | -21.4                                                                                                   | -11.3                                                                                                   | -1                                                                                                      |
| Trade, hotel, transport, communication and services related to broadcasting                             | -47.6                                                                                                   | -15.3                                                                                                   | -7.7                                                                                                    |
| Financial, real estate &professional services                                                           | -5.4                                                                                                    | -9.5                                                                                                    | 6.6                                                                                                     |
| Public administration, defence and other services                                                       | -9.7                                                                                                    | -9.3                                                                                                    | -1.5                                                                                                    |
| GVA at basic price                                                                                      | -22.4                                                                                                   | -7.3                                                                                                    | 1                                                                                                       |
| GDP at market prices                                                                                    | -24.4                                                                                                   | -7.3                                                                                                    | 0.4                                                                                                     |
| Table 2: Quarterly Real growth of GDP and demand components (percent)                                   | Table 2: Quarterly Real growth of GDP and demand components (percent)                                   | Table 2: Quarterly Real growth of GDP and demand components (percent)                                   | Table 2: Quarterly Real growth of GDP and demand components (percent)                                   |
| Components                                                                                              | FY 2020-21                                                                                              | FY 2020-21                                                                                              | FY 2020-21                                                                                              |
|                                                                                                         | Q1                                                                                                      | Q2                                                                                                      | Q3                                                                                                      |
| Total consumption expenditure                                                                           | -20.0                                                                                                   | -13.6                                                                                                   | -2.2                                                                                                    |
| Government consumption                                                                                  | 12.8                                                                                                    | -24.0                                                                                                   | -1.1                                                                                                    |
| Private consumption                                                                                     | -26.3                                                                                                   | -11.3                                                                                                   | -2.4                                                                                                    |
| Gross fixed capital formation                                                                           | -46.4                                                                                                   | -6.8                                                                                                    | 2.6                                                                                                     |
| Exports of goods and services                                                                           | -22.0                                                                                                   | -2.1                                                                                                    | -4.6                                                                                                    |
| Imports of goods and services                                                                           | -41.1                                                                                                   | -18.2                                                                                                   | -4.6                                                                                                    |
| GVAat basic price                                                                                       | -22.4                                                                                                   | -7.3                                                                                                    | 1.0                                                                                                     |
| GDP at market prices                                                                                    | -24.4                                                                                                   | -7.3                                                                                                    | 0.4                                                                                                     |