Impact of Covid-19 on Indian Economy: An Analysis of Fiscal Scenarios
Submitted by madhumita on Thu, 2020-08-27 15:12
Amidst 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. This paper finds that in 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.
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27/08/2020
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