Context: The recovery from shocks administered to demand and supply by COVID-19 has some short-term questions in-store, regarding the need for fiscal stimulus, its quantum and form.
Arguments for the need for fiscal stimulus:
The extent of the Fiscal Stimulus: Given all kinds of uncertainties associated with Covid-19 and a need to sustain a current account deficit (necessary for investments), a pragmatic target for the stimulus maybe 2% of GDP.
Form of Stimulus: