Dr. Krishnamurthy Subramanian

Finance Commission meets its Advisory Council

The Members of the Advisory Council felt that since they had met the Commission in April, national lockdown was further extended till end of May and now restrictions are being lifted in phased manner resulting in gradual resumption of economic activities. However, the impact of the pandemic on the economy and on the fiscal positions of the Union and State Governments is still highly uncertain. Many analysts and think-tanks have reduced their GDP growth projections for 2020-21. Due to ongoing social distancing measures in place and local level restrictions in many places, supply chains are not yet fully restored, which affects recovery process.