PM Modi & FM Review State of Economy
Prime Minister Narendra Modi held a meeting with Finance Minister Nirmala Sitharaman and senior officials of the ministry, reviewing the state of the economy that is coming out of the world’s toughest coronavirus lockdown. The prime minister has been taking review meetings on various aspects of the economy and took stock of the financial sector.
Although a pickup in economic activity has been seen, full recovery remains a major challenge as industries are functioning with lower capacities. Fresh lockdown measures announced by some states due to spurt in COVID-19 cases have thrown up new challenges.
The government has already rationalised its expenditure for the first two quarters of this fiscal, compressing all non-essential expenditures of ministries and asking departments and ministries not to initiate any new scheme in the current financial year stating that there is a need to use resources prudently in the wake of the pandemic.
The revenue mop-up has also been lower, with GST collections for the April-June quarter declining by 41 per cent compared to the previous year.
PM Modi with Finance Minister and senior officials of the ministry had held series of meetings last week also, in which presentations were made by different departments and think tank NITI Aayog.