- COVID-19 in all likelihood will turn into a black swan event for the global economy
- If COVID-19 drives global economy into recession, India can no longer focus on keeping fiscal deficit under check
The rapid spread of COVID-19 across continents has surprised health professionals and policy makers, throwing major markets into a tailspin. Many analysts already foresee signs of a global recession. In such a scenario, here are five ways government can safeguard its economy.
Prepare for a health emergency: As former RBI governor Raghuram Rajan recently said, countries need to prioritise fighting COVID-19 over stimulus packages. While the outbreak so far has not caused any casualty in India, with over 1.3 billion population, it must ready for the worst, lest it is caught napping.
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Ready a fiscal contingency plan: While the government so far has been fiscally conservative even in its latest budget, in case COVID-19 drives the global economy into a recession, it can no longer focus merely on keeping fiscal deficit under check. A robust fiscal plan to revive the economy should be kept ready.
Source: livemint
