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Current Spending By The Government And Its Effect On Overall Growth In The Indian Economy




Mohor Bhattacharjee, BA LLB, KIIT Bhubaneswar

INTRODUCTION:

When it comes to government spending, India has been a leader. The Indian government did not increase public spending to help its people deal with the public health calamity and enormous livelihood losses caused by a badly handled pandemic, unlike most industrialised countries and even most rising and growing market economies. Despite this, the administration's report to the International Monetary Fund stated that government spending in the fiscal year 2020-21 would actually fall.

As a result of the coronavirus outbreak, India's economy and human lives have been significantly affected. There are only a few notable exceptions to the general trend of declining domestic demand and exports, which has had a significant influence on nearly every industry. There is an attempt to look into the impact and possible remedies for a few critical areas. The impact on primary agricultural production and agro-input consumption is expected to be modest because agriculture is the country's backbone and is considered significant by the government. The free flow of produce, dairy, and other goods was previously permitted in some states. The halting of logistics trucks and uncertain movement constraints have a significant influence on online food shopping platforms. The RBI and the Finance Minister's suggestions will help the industry and its workers in the short term. COVID-19's macroeconomic impact on the Indian food business and the larger economy will necessitate a strong response from the country's rural food producers.

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Indian Journal of Law and Legal Research

Abbreviation: IJLLR

ISSN: 2582-8878

Website: www.ijllr.com

Accessibility: Open Access

License: Creative Commons 4.0

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