Government Spending During July-Sept Quarter Lowest In 6 Years

The Indian economy shrank for two straight quarters and is technically trapped in the recession. To speed up the economic activity stalled due to the COVID-19 lockdown, the government announced a stimulus package of Rs 20 lakh crore, launched 'Atmanibhar Bharat' and other new schemes so that more money would come in the hands of the people but the situation is completely reversed. In the last July-September quarter, the money that the government spent was the least in the last six years.
The biggest reason for the shrinking of this sector is the decrease in government spending. While the government spent Rs 7,26,278 crore in the first quarter of FY21, this figure was reduced to Rs 5,61,812 crore in the second quarter of July-September. To compare it with the July-September quarter of last fiscal, then it shows that the government has spent less than the previous year. This figure was Rs 6,85,212 crore last year.
The biggest reason for the shrinking of this sector is the decrease in government spending. While the government spent Rs 7,26,278 crore in the first quarter of FY21, this figure was reduced to Rs 5,61,812 crore in the second quarter of July-September. To compare it with the July-September quarter of last fiscal, then it shows that the government has spent less than the previous year. This figure was Rs 6,85,212 crore last year.
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