The government is working on the next set of measures to boost the economy, or rather provide an economic stimulus, sources told CNBC-TV18. A reiteration of sorts from official sources comes within days of Finance Minister Nirmala Sitharaman's statement wherein she said, "I have not closed the option to come up with another stimulus package."

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Sources indicated that the measures could be announced in the next 30 odd days. Various wings of the government are working on the contours of the package.

DEA Secretary in an industry interaction said on October 21, "The finance minister in her interaction has mentioned . She has asked us to work on it and we are actually working on that. Based on various suggestions received, we will be working on it

If the government is able to unveil further relief measures within a month, the festive season demand may receive a further leg up, depending on what the announcement is.

The government so far has spent roughly 1.25 percent of the GDP additionally on relief packages so far, according to official sources.

While it is unclear how much of a further fiscal spend the new package will entail, so far the government's view has been that pump priming the economy may not be the best strategy.

On October 12, while unveiling the festive season bonanza for government employees, FM Sitharaman said, "Measures to stimulate demand must not burden the common citizen with future inflation, and must not put government debt on an unsustainable path."

The finance minister added, "Today's solution must not cause tomorrow's problem."

First Published:Oct 21, 2020 8:32 PM IST