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Govt. unveils proposals to spur demand
Why is it in news?
- The Union Finance Ministry unveiled a mini-stimulus of sorts.
- The Ministry is hoping to spur fresh demand of about ₹1 lakh crore in the second half of the year.
Details:
- The mini-stimulus comprises incentives for the government and public sector employees to spend more on consumer durables and services.
- It offers interest-free loans of ₹12,000 crore to the States for a 50-year tenure to finance capital expenditure.
- It enhanced the Centre’s own capital expenditure plans by ₹25,000 crore, from the earlier allocation of ₹13 lakh crore.
- The Centre is supposed to spend it on roads, urban development, water supply and defence infrastructure.