With the announcement of the final tranche of Atmanirbhar Bharat Abhiyan, the COVID 19 relief package, a pattern to the government’s approach is visible. And that is to give a strong supply side push by boosting availability of capital on easy terms, keep income and wage support schemes to the minimum, empower constituencies ranging from farmers and workers to businesses, and finally, the most important, keep the damage to the fisc as low as possible. The fiscal impact of the 20 lakh crore package is estimated by economists at between 2 3% of GDP and that includes drawals from provisions already made in the Budget for this fiscal.
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