No plan to print foreign money notes to tide over disaster: Nirmala Sitharaman

NEW DELHI: The federal government has no plan to print foreign money notes to tide over the present financial disaster triggered by the outbreak of Covid-19 pandemic, Union finance minister Nirmala Sitharaman knowledgeable Parliament on Monday.
To a query on whether or not there may be any plan to print foreign money to tide over the disaster, the Finance Minister mentioned, “No Sir”.
Many economists and consultants have advised the federal government to resort to printing extra foreign money notes to help the financial system ravaged by the unfold of Covid-19, and defend jobs.
India’s actual Gross Home Product (GDP) is estimated to have contracted by 7.3 per cent throughout 2020-21, Sitharaman mentioned in a written reply to Lok Sabha.
This contraction displays the unparalleled impact of the pandemic and the containment measures that had been taken to manage the pandemic, she mentioned.
“The basics of the financial system stay sturdy as gradual scaling again of lockdowns, together with the astute help of Atmanirbhar Bharat Mission has positioned the financial system firmly on the trail of restoration from the second half of FY 2020-21,” she mentioned.
The federal government had introduced a particular financial and complete package deal of Rs 29.87 lakh crore beneath AtmaNirbhar Bharat (ANB) to fight the affect of the pandemic, to revive financial development and to bolster employment throughout 2020-21, she mentioned.
The Union Funds 2021-22 introduced quite a few measures to help broad-based and inclusive financial growth together with a 34.5 per cent improve in capital expenditure and 137 per cent improve in well being expenditure, she mentioned, including, the federal government introduced a aid package deal of Rs 6.29 lakh crore in June 2021, to strengthen public well being and supply impetus for development and employment measures.
Replying to a different query, Sitharaman mentioned, the affect of the second COVID-19 wave is anticipated to be muted given localised containment measures and fast upscaling of the vaccination drive.
The Union Funds 2021-22, estimates India’s nominal GDP development at 14.4 per cent throughout the present monetary yr ending March 2022.
The Reserve Financial institution of India, in its newest Financial Coverage Committee (MPC) decision of June 4, 2021, has projected India’s actual GDP to develop at 9.5 per cent in 2021-22, after accounting for the affect of the second wave as in comparison with its earlier projection of 10.5 per cent, she mentioned.
In reply to a different query, the finance minister mentioned the RBI has introduced Particular three-year Lengthy-Time period Repo Operations (SLTRO) of Rs 10,000 crore at repo charge for the Small Finance Banks (SFBs), to be deployed for contemporary lending of as much as Rs 10 lakh per borrower to offer additional help to small enterprise models, micro and small industries, and different unorganised sector entities adversely affected throughout the present wave of the pandemic.
The primary public sale beneath the SLTRO was performed on Could 17, 2021, she mentioned, including, the unutilised portion of notified Rs 10,000 crore is being carried ahead in every subsequent public sale, till totally utilised or until the final public sale to be performed in October 2021, whichever is earlier.
Three auctions beneath this scheme have been performed up to now, and SFBs have availed a complete quantity of Rs 1,640 crore beneath the scheme, she added.

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