No new schemes for a year, says finance ministry amid rise in Covid-19 cases

NEW DELHI: The Union finance ministry on Friday stated that "no new scheme or sub-scheme, whether under delegate power to ministry including SFC proposals or through EFC, should be initiated in 2020-21 except proposal announced under Pradhan Mantri Gareeb Kalyan Package, Aatma Nirbhar Bharat Abhiyan Package and any other special packages."
The ministry in an order mentioned that "in-principle approval for such schemes will not be given this financial year."
It further said that "initiation of new schemes already appraised/approved will remain suspended for one year till March 31, 2021 or till further orders whichever is earlier."
India’s economy grew at 3.1 per cent in the January-March quarter, its slowest pace in at least eight years, and the situation is expected to worsen rapidly, putting pressure on the government and central bank for additional stimulus and a rate cut.
The central bank and rating agencies have warned the worst is yet to come for the economy as the impact of more than two months of COVID-19 lockdown unfolds.
The government has already announced a Rs 20.97 lakh crore economic package, which includes Reserve Bank of India's (RBI's) Rs 8.01 lakh crore worth of liquidity measures till May 17.
India reported 9,851 new Covid-19 cases and 273 deaths in the last 24 hours, taking the country's tally to 2,26,770. The death toll stands at 6,348. As per the health ministry, more than 70 per cent of the deaths are due to comorbidities.
(With agency inputs)