Impact of Covid-19 on the Indian Economy: An Analysis of Fiscal Scenarios
Ila Patnaik () and
Rajeswari Sengupta ()
Working Papers from National Institute of Public Finance and Policy
Amidst the economic slowdown triggered by the outbreak of the Covid-19 pandemic in India there have been many demands for the government to announce a large fiscal stimulus to support the economy. Economic growth and tax revenues remain uncertain in 2020-21 making it challenging for the government to finance any addition to the fiscal deficit. In this paper we work out alternative scenarios of fiscal deficit for 2020-21. We find that in our baseline scenario, assuming a 5% contraction in real GDP and a 14.4% contraction in net tax revenue, fiscal deficit of the central government will be 6.2% of GDP.
Keywords: Fiscal deficit; Covid-19; Fiscal projections; Government borrowing; Tax revenue (search for similar items in EconPapers)
JEL-codes: E6 H2 H5 H6 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-mac
Note: Working Paper 319, 2020
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Working Paper: Impact of Covid-19 on Indian economy: An Analysis of fiscal scenarios (2020)
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Persistent link: https://EconPapers.repec.org/RePEc:npf:wpaper:20/319
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