FM Nirmala Sitharaman says no plan to print currency to tide over Covid-19 crisis

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Finance Minister Nirmala Sitharaman on July 26 informed the Lok Sabha that the government does not plan to print more currency to tide over the economic distress caused by the Covid-19 pandemic. “The fundamentals of the economy remain strong as gradual scaling back of lockdowns, along with the astute support of the Aatmanirbhar Bharat Mission has placed the economy firmly on the path of recovery from the second half of FY 2020-21,” Sitharaman said in a reply to a question by Lok Sabha member Mala Roy on the state of the economy during the coronavirus pandemic.

There have been calls from multiple quarters that the Reserve Bank of India should print more money and the government should use that to distribute it among the people and small businesses affected by the pandemic, either in the form of direct income support or employment support.

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The budget earlier this year 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 added.

Replying to another question, she said the impact of the second wave of the deadly pandemic is expected to be muted given localised containment measures and rapid upscaling of the vaccination drive.

Sitharaman said the central government has undertaken a ‘judicious mix’ of both supply side and demand side measures in a calibrated manner to balance growth-inflation dynamics and support long-lasting growth.