The new fiscal stimulus package will focus more on the group which is not completely poor and not rich.
In the Modi government’s new stimulus package, non-salaried middle class and small businessmen may finally get some relief amid the disruptions in businesses and job conditions. The new fiscal stimulus package will focus more on the group which is not completely poor and not rich, The Indian Express reported citing a government official. The non-salaried middle class has been the most affected and the timing of the rollout is crucial in getting the maximum benefit, the government official added. The government is expected to have zeroed in on who needs financial support the most but is still debating its timing and mode of delivery.
While the centre’s stimulus package was rolled out by keeping in mind that the recovery may begin in the second quarter, the July-September period is also expected to face a contraction in the economy. Immediately after the nationwide lockdown was lifted, the economy rebounded but it could not hold the momentum. With the regional lockdowns and skyrocketing cases of coronavirus, India’s economy once again stalled and is continuing the trend.
Earlier in May 2020, Finance Minister Nirmala Sitharamanhad had announced five tranches of the Atma Nirbhar package, worth Rs 20 lakh crore. Further, in various high-level meetings, the government is mulling over the need for a fiscal stimulus and support for the financial system. However, the severity of the impact of the coronavirus pandemic is so devastating that the near-term outlook is daunting despite the efforts to control the pace of fall.
Economists suggest that the signs of economic revival will only be seen as the caseload decreases or the vaccine gets available in the market, however, both seem to be a far-fetched dream at the moment. Recently, India has surpassed Brazil to become the country with a second-highest number of coronavirus cases in the world. Meanwhile, the record fall in the first quarter GDP is likely to bound the policymakers to open many unusual windows.