India's Covid-19 pandemic fiscal cost lowest among major nations: Report
The actual fiscal cost of the Centre’s Rs 21-trillion ‘Atmanirbhar
Bharat’ Covid-19 package was lowest among 20 major nations, said a recent
research report by Motilal
Oswal.
“The
true fiscal stimulus in FY21 (fiscal year 2020-21), as per our estimates,
amounted to only around Rs 2.5 trillion or 1.3 per cent of gross domestic product (GDP). The bulk of
the fiscal support constituted loan guarantees and non-budgetary measures,” the
report said.
Business Standard’s own
calculations suggest that the Centre’s fiscal impact amounts to around Rs 2.28
trillion, or around 1.2 per cent of GDP. This includes tax revenue foregone, outlay towards free
food distribution and cash handouts, increase in NREGA, interest subvention,
increase in viability gap funding for social infrastructure, and initial
support from the centre’s coffers to kickstart some of the liquidity and credit
measures announced by Finance Minister Nirmala Sitharaman.
Comments
Post a Comment