Govt to announce 2nd fiscal stimulus package

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Manmohan Singh
New Delhi, Jan 2: The auto, realty and small and medium enterprises is set to get a financial boost with government's plan to unveil second stimulus package on Friday, Jan 2.

The hard-hit of global economic recession made the Government announce multi-billion package on Dec 7 to give a push and create demand in all the segments.

The government will on Friday, Jan 2 unveil a second stimulus package to give the economy traction through measures aimed at aiding specific sectors, including auto, realty and small and medium enterprises. The first package was aimed at bringing down the price line, evident from the four per cent across-the-board cut in excise duty on manufacturing sector.

Apart from RBI's injection of Rs 3,00,000 crore liquidity into the system by way of cuts in key policy ratios - CRR and SLR, RBI also provided Rs 11,000 crore refinance to National Housing Bank and the Small Industries Development Bank of India in a bid to encourage lending to housing and SME segments.

Aside from fiscal stimulus, it is expected that RBI may also come out with rate cut announcements ahead of its policy review on Jan 27.

OneIndia News (With inputs from Agencies)

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