Next fiscal step likely after vaccine to cure Covid-19 comes: CEA

Says vaccine is not very far off and when it comes, uncertainty about the virus will considerably go down and the time will then be ripe for generating demand for discretionary spending

Chief Economic Advisor Krishnamurthy Subramanian hinted on Wednesday that the next set of fiscal measures could be announced after a vaccine was developed against Covid-19. The vaccine, he said, would end uncertainty, prompting people to spend money on discretionary consumption. 

Subramanian also said the goal to become the third-largest economy in the world could not be achieved with the current health of banks. He urged banks to use technology and data analytics for large corporate borrowings to reduce defaults. “It (fiscal support) is not a matter of 'if' but 'when'," he said at a Ficci event, replying to a question on