₹1.7 trillion relief package to mitigate the impact of the covid-19 pandemic on livelihoods of the poor, an additional outgo of ₹ 90,000 crore.
In a separate development later in the week, the Kerala government increased fares of public transport by 25% to stem mounting losses as the pandemic kept most people off the roads.The two developments, seemingly unlinked, are actually different sides of the same coin: they reflect the fiscal shock and consequences accruing from mega disruptions like the covid-19 pandemic.
It forced the government to implement a nationwide lockdown to contain the spread, knocking the bottom out of the economy. Not only did revenue receipts shrink to record lows, expenditure commitments skyrocketed as both the Union.