The Modi government is preparing another stimulus package and is now looking at sector-specific interventions by engaging with stakeholders, Finance Secretary Ajay Bhushan Pandey said on Monday. "Our approach, right from the onset of the pandemic, has been to study the situation, determine the need of the hour, gauge who needs assistance or stimulus or intervention, what is needed, which section of the industry, which section of the population, and then come out with that response," Pandey told moneycontrol in an interview.
He added the impact of the series of packages announced by Finance Minister Nirmala Sitharaman is now visible. "It has been a case of continuous monitoring and also continuous response, and that is why the finance minister came with a series of packages and stimulus periodically. We can see the results now, we can see their impact," the finance secretary was quoted as saying.
On the GST compensation issue and why the Centre could not decide earlier to borrow, Pandey said that the central government always maintained that it will create a special borrowing window within the parameters of Article 293.
"When we are saying that the Centre will borrow and will pass it on back to the states, this is the special borrowing window. Ultimately, the borrowers in this case are the state governments, it is in their books of accounts, and the guarantee is the Consolidated Fund of the State. So, therefore, let us not get into the question of a change in the stance. What we have to see is that, whether the special window facility has been provided by the Centre for facilitating loans to states," he told moneycontrol.com.