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India Needs to Hike Fiscal Stimulus to Revive Economy, Says Former Chief Statistician Proneb Sen

FILE PHOTO: A person works at a development website, as Miami-Dade County eases a few of the lockdown measures put in place in the course of the coronavirus illness (COVID-19) outbreak, in Miami, Florida, U.S., May 18, 2020. REUTERS/Marco Bello/File Photo

The authorities in May introduced a staggering Rs 20.97 lakh crore financial package deal, or about 10 per cent of GDP, which included Reserve Bank’s Rs 8.01 lakh crore price of liquidity measures.

  • PTI
  • Last Updated: June 30, 2020, 10:16 PM IST

Former chief statistician Pronab Sen on Tuesday stated the federal government ought to enhance fiscal stimulus to revive the COVID-19 hit economic system. He stated that because the lockdown has been lifted, the nation ought to transfer into the revival part.

“We need to increase fiscal stimulus. The monetary policy has done heavy lifting and now heavy lifting will be done by fiscal stimulus,” he stated whereas addressing a webinar organised by CII and Institute of Economic Growth (IEG).

The authorities in May introduced a staggering Rs 20.97 lakh crore financial package deal, or about 10 per cent of GDP, which included Reserve Bank’s Rs 8.01 lakh crore price of liquidity measures. Many of the measures unveiled by Finance Minister Nirmala Sitharaman had been within the type of mortgage ensures which don’t entail a direct fiscal value.

Several economists, brokerages and multilateral businesses have pointed to a deep contraction within the Indian economic system primarily attributable to disruptions brought on by strict lockdown introduced to stem the unfold of lethal coronavirus.

Speaking on the occasion,professor of economics at IEG, Manoj Panda, stated public expenditure on well being should be elevated. Aditya Birla Group’s chief economist Ajit Ranade stated public expenditure on well being needs to be massively scaled up.


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