Today's Paper

Manmohan’s stimulus package likely today

Special Correspondent

NEW DELHI: The government’s plan to unveil a comprehensive economic stimulus package did not materialise on Saturday as the Prime Minister’s Office decided to defer the announcement by at least a day.

While the RBI went ahead with a cut of 100 basis points in the short-term lending (repo) rate and the reverse repo rate, the government chose to hold back the package of fiscal and other measures, ostensibly in view of certain modifications which are required to be approved by Prime Minister Manmohan Singh, who now holds the additional charge of the Finance Ministry.

The Prime Minister was on a visit to Kolkata to preside over the annual convocation of Visva Bharati at Santiniketan as its Chancellor, apart from other engagements.

Asked whether the package was likely to be announced during the day, a source in the PMO, without assigning any reasons said: “Definitely not today [Saturday]. You will be informed whether it is tomorrow or on Monday.”

Commenting on the RBI’s rate cuts, Economic Affairs Secretary Ashok Chawla said: “This should give a clear signal to the banks and those who have not taken the signals earlier [to cut interest rates].”