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No withdrawal of stimulus before budget: Pranab
December, 23rd 2009

The government today said the fiscal stimulus given to the industry to combat the adverse impact of the global financial meltdown will not be withdrawn before the budget to be presented by Finance Minister Pranab Mukherjee in February.

"You have to wait till the Budget," the finance minister said, replying to a question, when the government proposes to withdraw the stimulus packages.

After the collapse of Lehman Brothers in September 2008 which triggered the global financial crisis, the government had provided three stimulus packages to spur growth in a slowing down economy. These were in tandem with the measures taken by the Reserve Bank of India to make available more liquidity to the cash-starved industry.

The fiscal packages were mainly aimed at sacrificing tax revenue and raising public expenditure with a view to generating more demand for industrial goods.

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