The first relief package for the second COVID-19 wave falls short of expectationsAfter asserting that people should wait for the Union Budget’s announcements to trickle down before seeking a fresh stimulus to cope with the second wave of the pandemic, the government finally unveiled a relief package of sorts this Monday. Nearly ₹2.68 lakh crore of this is in the form of credit guarantees. A further ₹1.5 lakh crore of guarantees has been promised to add to the ₹3 lakh crore emergency credit scheme, but the scheme’s tenure hasn’t been extended beyond September 30. Similar backing has been announced for loans worth ₹60,000 crore to COVID-affected sectors, but only tourism has been publicly identified. Just like last year’s ₹20 lakh crore package, the actual outgo from the exchequer this time is minimal and the direct stimulus to demand abysmal.

Source: The Hindu June 30, 2021 18:45 UTC