New Delhi, May 8 (IANS): Congress leader Rahul Gandhi said while addressing a press conference here that the heart of the economy should be protected immediately and the government should announce a fiscal assistance package soon.

Responding to a question put by IANS on why a financial assistance package is required, Rahul Gandhi said "because economy is collapsing " and due to stoppage of work the economy had come at halt.

"There is a catastrophic effect on the economy" and to start the economic engine a fiscal assistance package is required.

"Indian economy has stopped, businesses are collapsing and you need to create demand immediately. You need to get the system started else there will be a catastrophe."

He asserted that the government should come out from the fear of "downgrading". He added that the government is fearing a downgrading if it spends too much as it may lead to a large deficit. But the government should come out from the external fears.

The Congress leader said the need of the hour is to create demand, put money in the system, put money in poor people's hands, help MSMEs and make sure you're protecting some of the larger players because these are all interconnected.

"You have to take care of big and small businesses alike because everything is connected. If you want to start the engine, you cannot think of starting just one part of the engine", he said, and asserted that MSMEs should be provided support in terms of loan moratorium.