Perspective on FM`s Relief measures announcement by Ms. Madhavi Arora, Emkay Global Financial Services
Below are Perspective on FM's Relief measures announcement by Ms. Madhavi Arora, Lead Economist, Emkay Global Financial Services.
“While the measures are welcome and target Covid sensitive sectors , most of the fiscal support is still below the line and in the form of loan guarantees, and not direct stimulus. Overall, Amid various push and pull, there is a likelihood of fiscal slippage to the tune of around 0.5% from the initially budgeted 6.8%. Despite the slippage, the effective fiscal impulse will still be negative in FY22. Given the limited efficacy of monetary easing currently, continued countercyclical fiscal policy support—and avoiding a premature consolidation—remains crucial.”
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