Impact of Covid-19 on the Indian Economy: An Analysis of Fiscal Scenarios
Published By: NIPFP on eSS | Published Date: September, 07 , 2020Amidst the economic slowdown triggered by the outbreak of the Covid-19
pandemic in India there have been many demands for the government to
announce a large fiscal stimulus to support the economy. Economic growth and tax revenues remain uncertain in 2020-21 making it challenging for the government to finance any addition to the fiscal deficit. In this paper alternative scenarios of fiscal deficit for 2020-21. We find that in our baseline scenario, assuming a 5% contraction in real GDP and a 14.4% contraction in net tax revenue, fiscal deficit of the central government will be 6.2% of GDP. [NIPFP Working Paper No. 319]
Author(s): Ila Patnaik | Posted on: Oct 08, 2020 | Views() | Download (84)