New Delhi  - The Indian government Sunday announced a fiscal stimulation package aimed at boosting industrial sectors which have been affected by the global economic recession.

The total spending on the programme from December to March-end would be to the tune of 3 trillion rupees (61 billion dollars), a release from the prime minister's office said.

India's financial year runs from April to March.

The package, which is a combination of incentives and tax reductions, targets labour intensive export industries like textiles, leather, gems and jewellery along with realty, textiles, infrastructure and to a lesser extent the automobile industry.

A stimulus package for the economy, to be announced tomorrow by the government and Reserve Bank, will not be a one-off assistance, but would be the first in a series of measures to help the sectors hit by the global slowdown.

Andhra Pradesh Assembly has passed Fiscal Responsibility and Budget Management bill 2008 through a voice vote on Wednesday. The bill is aimed to minimize the effect of global slowdown by enabling the state to get additional borrowings for higher capital expenditure during this year.

The finance minister of AP said that government is facing shortage of funds to support welfare programs for poor. State has an option to generate revenue through land sale but required revenue can not be generated as property rates are declining following global slowdown.

For the week ended Nov 22, India’s annual rate of inflation fell further to 8.4% as compared to 8.84% the week before on account of a sharp fall in petroleum fuels prices.

During the corresponding week of the last year (2007), the annual inflation rate was 3.11%.

The official wholesale price index (WPI) for all commodities dropped 0.6% to 233.7 during the week from 235.1 for the previous week.

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Newly appointed Union Home Minister, P. Chidambaram said that no one in the country is more capable than Dr. Manmohan Singh for the finance portfolio. Admitting to some unfinished tasks in the finance ministry, he hoped to complete them under the control of the PM. Dr. Singh is an economist of international repute, having exceptional background as a union finance minister, governor of reserve bank and chairman of planning commission. He would definitely control the Indian economy in the wake of the financial crisis.