Lacking 'Fiscal Stimulus'

 India’s economy contracted mainly by 24% in the foremost quarter of the current  financial year because the Union government did not filled the required stimulus to the much needed  68-day hard lockdown on the economy important to control the check of the COVID-19 spreading disease.

India’s GDP decreased by a record of 23.9% in the quarter ending in the June 2020 where India became the worst performer of the year ever recorded majorly because the government’s focus is on the supply side of the goods and services. This is not the right time where Say's Law has to be applied.

Measures should have been taken-

• The Union government should have spent money to create more demand among the people as the government focused on the  Rs 20 lakh crore stimulus package that was already been faked  as a 10% of the GDP, makring people more liable to pay the loans than direct fiscal stimulus.
• The direct fiscal stimulus, which would have generated excessdemand is into the ratio of less than 2% giving out of that most of the  routine revenue expenditure.
• The need is to provide direct fiscal stimulus to create good and healthy demand, which will attract and promote private investments both local and international in the second round of the current financial year.
• It is important to understand that India is experiencing a V-shaped recovery after unlocks and mere focus is to be put on it.
• There is also a expectationto a second round of targeted fiscal support in the upcoming months whereas it remains unclear about the government policy to provide a large scale demand stimulus for the betterment of people of the country.