Giving a clear indication on unveiling a package in the interim budget to stimulate industrial demand, the government said on Thursday it is not restrained by the Constitution from announcing urgent policy intervention in the run-up to the Lok Sabha elections.
"A very caliberated policy prescription ... is in the process of being formulated. You will see some indications in the vote-on-account, in the interim budget," minister of state for industry Ashwani Kumar said at a Ficci function in New Delhi.
He said some sector-specific stimulus packages would be announced even before the vote-on-account in Parliament. The government is not restrained from announcing packages in the vote-on-account, home minister P Chidambaram said, adding, "Constitutionally, there is no bar."
Talking to reporters after the Cabinet meeting, Chidambaram said, "Wait till February 16. There may be one (package), there may not be one." But Kumar was forthcoming.
"We are coming up with sector-specific packages to boost those areas which need to be kick-started, particularly those which are labour-intensive".
After handsome growth in the first four years of its tenure, the United Progressive Alliance government is concerned at massive job losses in the run-up to general elections.
