covid-19 pandemic Government shock

Opinion | Hit the reset, it’s time to look at a pandemic budget

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₹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.

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