COVID-19: Amid rising coronavirus cases, no new schemes for a year, says Finance Ministry

New Delhi, June 05: Union Finance Ministry on Friday said that the government would not start any new scheme for a year as a weeks-long lockdown to contain the coronavirus spread played havoc with India's economic growth and finances.

According to reports, Ministries have been asked to stop sending requests for new schemes to the finance ministry. Spending would only be allowed in the Prime Minister Garib Kalyan Yojana and measures announced under the Atmanirbhar Bharat policy to boost domestic business.

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The government has announced a cumulative stimulus package of Rs 20 lakh crore, which is nearly 10 per cent of the country's gross domestic product (GDP) to provide relief to various segments of the coronavirus-hit economy.

On May 28, Finance Minister Nirmala Sitharaman reviewed the state of the economy at the meeting of the Financial Stability and Development Council (FSDC), in view of disruptions caused by the COVID-19 pandemic. This was the first meeting of the FSDC, the apex body of sectoral regulators headed by the finance minister, since the coronavirus outbreak.

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The 22nd meeting of the council, held via video conferencing, assumes a greater significance considering that the economy is expected to contract by 5 per cent by some estimates amid the virus crisis. The FSDC, which also comprises RBI Governor and other financial sector regulators, underlined the need to continue with measures to address the liquidity and capital requirements of the financial sector.