The government has no plan to print currency notes to tide over the current economic crisis triggered by the outbreak of COVID-19 pandemic, Finance Minister Nirmala Sitharaman informed Parliament on Monday
Many economists and experts have suggested to the government to print more currency notes to tide over the difficult economic situation with a view to support the economy ravaged by the spread of COVID-19, and protect jobs. India’s real Gross Domestic Product (GDP) is estimated to have contracted by 7.3% during 2020-21, Sitharaman said in a written reply to Lok Sabha. This contraction reflects the unparalleled effect of the pandemic and the containment measures that were taken to control the pandemic, she said.
“The fundamentals of the economy remain strong as gradual scaling back of lockdowns, along with the astute support of Atmanirbhar Bharat Mission has placed the economy firmly on the path of recovery from the second half of FY 2020-21,” she said. The government had announced a special economic and comprehensive package of Rs 29.87 lakh crore under AtmaNirbhar Bharat (ANB) to combat the impact of the pandemic, to revive economic growth and to bolster employment during 2020-21, she said.
The Union Budget 2021-22 announced a number of measures to support broad-based and inclusive economic development including a 34.5% increase in capital expenditure and 137% increase in health expenditure, she said, adding, the government announced a relief package of Rs 6.29 lakh crore in June 2021, to strengthen public health and provide impetus for growth and employment measures.