Montek, finmin officials meet PM on second stimulus package

NEW DELHI: Planning Commission Deputy Chairman Montek Singh Ahluwalia and the Finance Ministry brass are believed to have met Prime Minister Manmohan Singh to discuss the modalities of the second stimulus package, which could come as a New Year gift for industry.

Finance Secretary Arun Ramanathan, Expenditure Secretary Sushma Nath and Revenue Secretary P V Bhide are understood to have called on Manmohan Singh, who is also holding the finance portfolio, at his residence.

Ahluwalia is understood to have deliberated on the package at a meeting with the Prime Minister separately.

The meetings assume importance with talks of a second stimulus package by the Government and rate cuts by the RBI in the next few days to boost economic growth and slackening demand as well as meet the shortage of funds due to the global slowdown.

Yesterday, Ahluwalia said, "We are trying to co-ordinate a number of different steps. And I hope in the next few days we will be ready to make an announcement (about the second stimulus package)."

He had said there were various suggestions on these and they had been referred to Cabinet Secretary K M Chandrasekhar.

Ahluwalia had also said with the inflation rate coming down to almost half its peak of 12.91 per cent in August and the economy struggling to achieve a solid growth rate, there is scope for easing monetary policy.

"It is clear at the moment that the economy is growing below its potential and inflation is definitely on its way down. And these factors would suggest that there is scope (for easing monetary policy)," he had said.