Nirmala Sitharaman's announcements will boost demand in economy: PM Modi

New Delhi: The announcements made by Finance Minister Nirmala Sitharaman on Monday are "timely moves" which will boost demand in economy, Prime Minister Narendra Modi said. Sitharaman announced a payment of cash in lieu of LTC and Rs 10,000 festival advance to government employees to stimulate consumer demand during the festival season and boost the economy.

"Today's announcements by FM @nsitharaman Ji are timely moves which will boost consumer spending and sentiment as well as push capital expenditure. These steps will also boost demand in our economy," Modi tweeted.

She also announced additional capital spending and Rs 12,000 crore, 50-year interest-free loan to states to boost the economy that has been battered by the pandemic and the resulting lockdown.