Over the past few months, India’s economy has taken a steep decline due to the global pandemic. The Central government had declared a nationwide lockdown to prevent the contagious COVID-19 virus following which hundreds and thousands of people lost jobs and even their homes. While many are slowly jumping back to their tracks, there are still people who require boosters to get back.
Diwali Loans granted by the government.
Over the months, the central government has introduced many schemes and programs to facilitate the people of India to overcome the pandemic after-affects.
To help the economy get back on its feet, India’s government has announced a stimulus worth Rs one lakh crore targeted at increasing demand from citizens.
Our honourable finance minister, Mrs. Nirmala Sitharaman announced that the Festival advance had been discontinued from the 6th Pay Commission following which they announced a unique Festival Advance Scheme. According to the scheme, the central govt staff will get interest-loans up to Rs. 10,000. The loan can be repaid over a period of 10 months.
The Finance Minister also announced to issue Rs. 12,000 crore interest-free 50-year loans to the states for various capital projects. The loan will have to be entirely spent on new or ongoing projects and infrastructures. She further mentioned that states could also use the funds to settle bills of contractors and suppliers, which has to be paid before March 31, 2021.
The govt of India is spending around Rs. 47,000 crore to give loans and such financial aids whereas the private sectors are expected to contribute Rs. 28,000 crore.
The Finance Minister stated that these measures are to encourage Indians to spend some of their savings.