No plan to print more currency to tide over economic slowdown: FM Nirmala Sitharaman

27th July,2021

No plan to print more currency to tide over economic slowdown: FM Nirmala Sitharaman


The economy's fundamentals remain solid, as the progressive lifting of lockdowns, along with the astute assistance of the Atmanirbhar Bharat Mission, has put the economy firmly on the road to recovery in the second half of FY 2020-21, according to FM. Nirmala Sitharaman testified in front of the Lok Sabha. Union Finance Minister Nirmala Sitharaman informed the Lok Sabha on July 26 that the government has no plans to issue more money to help the economy recover from the COVID-19 epidemic. The fundamentals of the economy remain strong, with the economy firmly on the path of recovery from the second half of FY 2020-21, thanks to the astute support of the Aatmanirbhar Bharat Mission," Sitharaman said in response to a question from Lok Sabha member Mala Roy on the state of the economy during the coronavirus pandemic. In a written reply, the finance minister said "no" when asked "if there is any intention to create currency to tide over the crisis." Several sections have called for the Reserve Bank of India (RBI) to produce additional money and the government to utilise it to give it to the individuals and small businesses most impacted by the pandemic's economic woes, either in the form of direct income support or employment support. This manoeuvre is sometimes referred to as 'helicopter money' or a 'helicopter drop.' Higher inflation is a side consequence of creating more money.