TIWN
New Delhi, Jan 17 (TIWN) Relief to industries struggling to recover, levy of Covid cess on industries that bounced back, and reducing liquidity by increasing investment-linked deductions could be among the main themes of the Union Budget for 2022-23.
As per Budget expectations detailed by Taxmann, last year the government had announced multiple stimulus packages to rejuvenate the economy impacted by the Covid-19 pandemic.
The government followed the counter-cyclical fiscal policy to stabilise the business cycle.
This policy requires the government to reduce spending/increase taxes in good times and increase spending/reduce taxes in bad times. To a large extent, these policies helped the Indian economy recover from the recession.
Typical economic recoveries happen in V, W, Z, U and L shapes. However, economists are starting to think the recovery from Covid-19 might be K-shaped.
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