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More fiscal measures needed for short term support to economy: Economic Survey

IANS
Updated: January 29th, 2021, 21:25 IST
in Business, Home News
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Pic - AFP

Pic - AFP

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New Delhi: The Economic Survey for 2020-21 has suggested that the government should come up with more fiscal measure for short term support to the economy and businesses.

Highlighting the long term reform measures, the survey tabled by Finance Minister Nirmala Sitharaman in Parliament on Friday, also said that to eliminate the possibility of growth being impacted in the medium to long run, the Government has been extremely pro-active in launching several seminal reforms, but noted that their impact will manifest in the medium to long-term only.

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It suggested that to ensure that the economy remains in good health to avail the full benefit of these significant reforms, the “economic bridge” between the medium and long-term has to be created.

“Only an active fiscal policy — one that recognises that the risks from doing too little are much more than the risks from doing too much — can ensure that this ‘economic bridge’ is well laid out,” he said.

Although, the government has taken several measures to support and provide relief to businesses, steps to push demand have been lagging, according to several economists. Supply-side push, however, have been appreciated.

Further, the issue has been raised at several forums by several industry representatives that, although the reforms measures are welcome. They would reflect changes only in the long run, while the businesses and the common man need some immediate cushioning.

IANS 

Tags: economic surveyfiscal measures
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