Fiscal policy must take centre-stage for a broad revival
SummaryMonetary policy has done its bit and fiscal policy can’t continue to shy away from the responsibility it must bear for effecting an economic revival that would benefit a vast majority of India
The third wave of the pandemic may be slowly receding, with declining covid infections, but the impact of the pandemic on the economy may last longer than expected. A lot will depend on the response of the government in dealing with the pandemic-induced disruptions. It is clear from a number of nationally-representative surveys that India’s economy is not only suffering a growth slowdown, this has had highly varied effects on various sections of our population.