ABSTRACT
Against the backdrop of the COVID-19 pandemic, the economic stimulus packages announced by the national government are analysed and an attempt is made to identify the plausible fiscal and monetary policy coordination. When credit-linked economic stimulus packages are partial in its impact on growth recovery, an accommodative fiscal policy stance in the forthcoming Union Budget 2022-23 is crucial for the economy. © 2022 Economic and Political Weekly. All rights reserved.
ABSTRACT
As part of the COVID-19 economic stimulus package, the Government of India increased the borrowing limit of the states from 3% to 5% of the gross state domestic product. The power sector reform at the state level is one of the criteria to avail this extra borrowing. The effi ciency parameters of the power sector are analysed here, and it is observed that there are statewise differentials in the fi nancial and operational parameters. The average aggregate technical and commercial losses that should have been 15% by 2018-19, presently, on average, stand at 26.15%. The average cost of supply-average revenue realised has also widened. The operational parameters indicate widening ineffi ciencies across states in the power infrastructure. © 2021 Economic and Political Weekly. All rights reserved.
ABSTRACT
The first report of the Fifteenth Finance Commission has allayed many fears that arose after the notification of the terms of reference of the commission. The main report for the period 2021-22 to 2025-26 will have to factor in the devastating impact of COVID-19 on the economy and provide adequate fiscal space to the states for socio-economic response and recovery. © 2020 Economic and Political Weekly. All rights reserved.
ABSTRACT
The macroeconomic uncertainty created by COVID-19 is hard to measure. The situation demands simultaneous policy intervention in terms of public health infrastructure and livelihood. Along with the global community, India too has announced its initial dose of fiscal and monetary policy responses. However, more fiscal-monetary policy coordination is required to scale up the policy response to the emerging crisis. Innovative sources of financing the deficit, including money financing of fiscal programmes, a variant of “helicopter money,” need to be explored. © 2020 Economic and Political Weekly. All rights reserved.