The Modi government may have touted a mega Rs 21 lakh crore stimulus package to deal with the fallout of COVID-19 outbreak on the economy but the actual budgetary outgo is just Rs 2.02 lakh crore or less than 10 per cent of the total package, experts said on Sunday.
"The overall stimulus package amounted to Rs 20,97,053 crore, that is, nearly 10 per cent of FY21 GDP. However, it is to be financed only to a limited extent by additional budgetary resources which amount to 10 per cent of the overall package," EY said in its comment on the package announced by Finance Minister Nirmala Sitharaman.
It said about 5 per cent of the package was already provided in the budget for 2020-21 fiscal. The balance of 85 per cent relates primarily to liquidity easing measures by the Reserve Bank of India (RBI), credit line by banks and support to shadow banks.
EY said out of the nearly Rs 21 lakh crore package, Rs 8.01 lakh crore is on account of liquidity enhancing measures taken by the RBI since February.
Additional outgo for the Centre from dole out of free foodgrain and cooking gas to poor and some cash to senior citizens, disabled and poor women, as per announcement in March, would be Rs 80,000 crore, it said.
The five tranches of stimulus that Sitharaman announced since May 13 totalled an additional outgo of Rs 1.22 lakh crore on plans such as enhanced outlay for employment guarantee scheme and free foodgrain and subsidised housing for migrant workers.
The other items on stimulus were for banks and financial institutions to lend more to small businesses and provide support to shadow banks and electricity distribution companies.
D K Srivastava, Chief Policy Advisor, EY India said: "The final picture of central government's COVID-related stimulus package at the conclusion of the fifth tranche of Finance Minister's announcement sums to Rs 20.97 lakh crores, which amounts to 9.8 per cent of FY21 GDP."
"Nearly 5 per cent of the stimulus relates to already budgeted expenditures. The rest of the stimulus primarily pertains to RBI's liquidity enhancement measures, government's credit guarantee programs and insurance schemes."