The Union Government may announce some fiscal measures in the form of a second economic stimulus package in a few days to propel the growth of economy.  It had earlier announced the first stimulus package on December 7 and taken various measures to mitigate the impact of global slowdown. Reserve bank is also likely to cut interest rates as part of the second proposed stimulus package.

The Deputy Chairman of Planning Commission, Montek Singh Ahluwalia said, "We are trying to coordinate a number of different steps and I hope in the next few days we will be ready to make an announcement." He expressed satisfaction over the declining rate of inflation which currently stands at 6.61 per cent from its peak level of 12.91 per cent a few months ago. This situation can help the apex bank to inject more liquidity in the finance system.  

He added, "It is clear at the moment that the economy is growing below its potential and inflation is definitely on its way down. And these factors would suggest that there is a scope. We should be watching the situation carefully and we should not hesitate to take further steps. These matters are being discussed.”

Meanwhile, RBI chairman, D. Subbarao also met PM Manmohan Singh on Monday to discuss various finance issues including the proposed interest rate cut.