Context: The result of the handling of Past economic crises underlines the importance of expanding capital expenditure (capex) rather than Revenue Expenditure (revex) to come out of a crisis.
Arguments against increasing revex instead of capex during a crisis: Increasing revex during Global Financial Crisis (GFC) of 2008 resulted in macroeconomic crisis in 2013 -
Arguments in favour of increasing capex during a crisis: done during the Asian financial crisis (AFC) of 1998.
India’s COVID response: Inspired by the success in dealing with the AFC crisis