After the early announcement of a relief package worth ₹1.7 trillion for the most vulnerable, expectations arose of bailout funds aimed at small and medium businesses. Even if India were to keep economic growth in positive territory this fiscal year, the number of those who might soon find themselves jobless should make us shudder. The Reserve Bank of India has cranked up the banking system to ease credit for businesses. Backing such loans for companies, of course, would add to the Centre’s fiscal burden. An over-enlarged fiscal deficit will surely have consequences, and so the government is right to be cautious in how it raises the money.

Source: Mint April 16, 2020 16:30 UTC