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DAILY NEWS ANALYSIS
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19 May, 2020
8 Min Read
With the announcement of the final tranche of Atmanirbhar Bharat Abhiyan, the government tries to give a strong supply-side push by boosting the availability of capital on easy terms, keeping income and wage support schemes to the minimum, empowering constituencies ranging from farmers and workers to businesses, and finally, the most important, keep the damage to the fiscal 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 drawers from provisions already made in the Budget for this fiscal.
The pillar on which the package rests as liquidity support so that businesses can crank up again and set the economic cycle back in motion.
Demand side-stimulus
The government has done well in increasing the budget for MGNREGA by two-thirds, adding another 40,000 crore.
With migrants now returning to their villages, MGNREGA can be leveraged to keep them occupied with meaningful work. The demand of States for higher borrowings limit has been granted but with clear reform milestones that they have to meet.
It remains to be seen if States are enthused to fall in line. The government has also used the opportunity to unleash some much-needed reforms in agriculture marketing, open up more sectors for private participation, enhance foreign direct investment in defence, corporatise the monolith Ordnance Factory Board and so on.
Way ahead
While it is impossible to satisfy all sections of society, especially in a pandemic situation, it has to be said that the government has taken a huge gamble by refusing to borrow and spend more on boosting demand. If the strategy of boosting supply works, it is fine. But if it does not, the government will be faced with a bigger problem down the line.
Source: TH
03 Dec, 25
On 1st November, eight Indian states—Andhra Pradesh, Chhattisgarh, Haryana, Karnataka, Kerala, Madhya Pradesh, Punjab, and Tamil Nadu—along with five Union Territories—Andaman and Nicobar Islands, Chandigarh, Delhi, Lakshadweep, and Puducherry—celebrate their Formation Day. This date marks an important milestone in India
02 Dec, 25
The Turtle Wildlife Sanctuary, also known as the Kachhua Sanctuary, is located in the Varanasi district of Uttar Pradesh. It is recognised as India’s first freshwater turtle wildlife sanctuary, established to conserve endangered turtle species and support the ecological health of the Ganga River. Location and Extent The sanctuary co
02 Dec, 25
The Ministry of Education plans to introduce Artificial Intelligence (AI) and Computational Thinking (CT) from Class 3 onwards in the 2026–27 academic year. This initiative is part of the National Curriculum Framework for School Education (NCF-SE) 2023 and aligns with the National Education Policy (NEP) 2020. The aim is to prepare student
02 Dec, 25
Scientists from the Environment Department of Himachal Pradesh University (HPU) in Shimla have recently revealed that the Sal tree (Shorea robusta) is the most effective natural air purifier for combating rising pollution levels. Their findings highlight the tree’s superior capacity to trap dust, absorb gases, and cleanse the air compared
02 Dec, 25
The President of the United States has ordered the resumption of nuclear weapon testing after a gap of 33 years, the last test being in 1992. This decision marks a significant shift in global nuclear policy and has far-reaching implications for geopolitics, the environment, and international security. Status of Global Nuclear Weapon Testing
03 Dec,2025
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