The Modi government took an important decision on Friday amid the impact on the country’s economy due to the Corona crisis. The Center will not introduce any new government scheme in the current financial year (2020-21).
The Finance Ministry has asked all ministries not to start new schemes till the end of this financial year. However, the government has not banned any kind of self-reliant India campaign and Prime Minister’s poor welfare schemes.
As per the order of the Finance Ministry, no government schemes will be approved this year. New schemes already approved are postponed to 31 March 2021 or until further orders.
In-principle approval for such schemes will not be given this financial year. Initiation of new schemes already appraised/approved will remain suspended for one year till march 31, 2021 or till further orders whichever is earlier:
Finance Ministry https://t.co/gMDW7ODwfN
— ANI (@ANI) June 5, 2020
The entire economy has suffered a major setback due to the lockdown implemented in the country due to Corona virus. Work in many areas remained closed for a long time, causing thousands of crores of damage. The government had recently announced a package of 20 lakh crores to bring the economy back on track and for the workers, poor and other people who are suffering from Corona. The package containing ten percent of the country’s total GDP made important announcements for several sections.
At the same time, the Reserve Bank of India (RBI) said last month that the corona virus will have a profound impact on the economy. India’s GDP (GDP) growth will be negative in FY 2020-21 due to disrupted economic activity. RBI Governor Shaktikanta Das had said that the global economy is moving towards recession and inflation estimates are highly uncertain. Das had said that economic activity would be affected in the first half of the current financial year due to lack of demand and supply disruption. Some improvement in economic activity is expected in the second half of 2020-21. He said, “GDP growth is expected to be negative in 2020-21, although there will be some momentum in the second half of 2020-21.”