The corona outburst has affected the Indian economy in a tough manner. Everyday increase in the number of cases and regular expenditure has put India into the threat with a huge amount of fiscal deficit. The package announced by the Prime Minister few days back is the sole and almost 10 per cent of the GDP of a developing country. The relief package was for 20 lakh crores which included all the sectors mainly MSME, business and out grown sector. India will be looking forward to be independent and generate all the opportunities within the country. Make in India mission will be promoted and gain its significance over the time.
As the relaxations provided in the relief package covers almost all the financial and social benefits as for the survival of the citizens of country. increase But as much pros this package has there are cons equally. The country’s fiscal deficit is likely to be more than double to 7.9 per cent in the current financial year. Before the package was announced it was about 3.5 per cent in the reports.
The government Rs 20 lakh crore package includes Rs 1.7 lakh crore of fiscal stimulus announced in the first phase, Rs 5.6 lakh crore stimulus provided through various monetary policy measures and Rs 5.94 lakh crore through the second phase, remaining Rs 6.70 lakh crore package is still to be announced.
The government has announced an additional borrowing of around Rs 4.2 lakh crore or 2.1 per cent of GDP. increase With higher fiscal deficit, limit for sustainable debt arises and the raising percentage of Government’s debt has reached a scary number that is 66 per cent in financial year 2019.
To curb out the deficit government will need strong and strategic revised budget to move further with reallocation of funds, booming of sectors, managing the demand supply chain and reopening of economy.