Can the Modi government present a second budget to deal with the economic crisis?

Growth rate may be lower than anticipated due to Coronavirus infection epidemic

APRIL 09 (WTN) - Nearly 200 countries, including India, are affected due to Coronavirus infection. Coronavirus infection, which originated and spread from Wuhan city of China, is the biggest crisis for the survival of human society today. At the time of writing this article, 89,417 people have died across the world due to Coronavirus infection. A 21-day lockdown is underway in India to control the Coronavirus infection. Due to the lockdown, there is a ban on economic activity across India. In such a situation, India's economy may be adversely affected in the coming time.

In fact, according to a United Nations report, India's growth rate may be much lower than anticipated due to the adverse circumstances caused by the Coronavirus epidemic. According to a UN report, India's growth rate during the financial year 2020-21 can be reduced to 4.8 percent. But after this, the situation will improve in the coming financial year, and the growth rate for FY 2021-22 can be 5.1 percent. However, the report states that these are extremely preliminary forecasts and are based on data and information available as of March 10. Hence, there may be changes in the time to come.

The report clearly warns that the COVID-19 epidemic will have serious economic consequences worldwide. The United Nations report cites economic and social changes in Asia and the Pacific due to the Coronavirus epidemic crisis. The report states that COVID-19 will have far-reaching economic and social consequences in the region, and cross-border trade, tourism and financial relations will be most affected.

For your information, let us know that the UN report says that since the COVID-19 epidemic is still growing rapidly, it is expected to have a very negative impact on the economies of Asia and the Pacific. As far as India is concerned, according to the report, India's economic growth projections have come down significantly compared to earlier, and increasing unemployment has also affected consumer sentiments. The report clearly states that India may face serious challenges related to exports as well as agricultural activities.

As you are aware, the Finance Minister Nirmala Sitharaman had presented the budget on February 1 recently. But the circumstances have completely changed due to Coronavirus infection. In the present circumstances, the amount allocated for the particular sector, while presenting the budget, needs to be reconsidered. At the same time, when the budget was presented two months ago, the economy was not moving towards such recession as it is now seen.

Industrial production is at a standstill at this time. In such a situation, the rate of unemployment is reaching an all time high. Other industries were also not prepared for such losses. For these reasons, many economists say that the central government should present a second budget to deal with the adverse situation created by the crisis of the Coronovirus epidemic. Now, it has to be seen how the Modi government deals with this big crisis on the economy?