20 APR,2020 | MEDC
A tough policy trade-off is looming large viz. public health vs economic revival. Everyone is expecting the government to do more, but (at least, as of now) progress on one front will necessarily come at the cost of the other. Low oil prices and the prediction of a normal monsoon are today the key to cushioning any further blow to the economy. However, there is a rising possibility that, far from recording growth our economy is likely to shrink this year. Clearly, the nationwide lockdown will have to be lifted only in stages (both geographically and industry-wise), and it will be heavily contingent on how the situation unfolds. The fiscal deficit will need to be skilfully managed because (when properly calculated) it is going to rise to levels never before witnessed in our economic history. Fiscal space is limited and creating more is difficult. Economic revival matters, but not at the cost of an unhealthy citizenry.
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