Economic survey 2020-21: Promise of a counter cyclical fiscal stance

While this will mean material deviation from the FRBM road map, we feel that a decisive and credible stance on near-term fiscal deficit and FRBM targets is the need of the hour

The Economic Survey stood out for its wide coverage, in-depth analysis of current economic issues and key recommendations as regards policy priorities. While this article attempts to discuss a number of such points, it is clearly far from being exhaustive.

Expectations of a strong recovery

The Survey expects a strong recovery with 11 per cent year-on-year (YOY) growth in real GDP in FY22. While investment demand and exports remain anaemic, relatively better rural demand remains a source of comfort. In this context, reviving consumer confidence from the current unprecedented lows needs to be a key focal point for policymakers in the near