According to data released on Tuesday, the government has distributed loans worth Rs 4.91 lakh crore in two months and has been issuing income tax refunds of Rs 1.46 lakh till November. The government has taken these steps to increase the credit and liquidity to break through the economic slowdown in the country.
State-owned banks have given loans worth Rs 2.39 lakh crore to individuals and corporates including small businesses. The government is continuing the customer outreach initiative announced by Finance Minister Nirmala Sitharaman.
Until November 28, the income tax department has issued refunds worth Rs 1.46 lakh crore, which is a straight-up 23% increase in the amount issued a year ago. Senior finance ministry officials said that the extent at which the refunds are issued and the growth indicates a streamlining of the process.
Industry and retail consumers have loaned a total of Rs 4,91,834 crore in two months. Home loans account for Rs 27,254 crore and education loans Rs 1,111 crore.
Lending huge amounts of money is government’[s way to revive the economy, according to the data, in the second quarter itself, the economy has expanded by 4.5%. Other measures announced by the government to curtail the downfall of the Indian economy is to lessen the corporate tax, especially for new manufacturing units and easier access to obtaining credit.