Stimulus 2.0 won't change outlook for business

The second package focuses mostly on support to businesses, especially MSMEs

The much-awaited second stimulus package has come. Never mind the headline figures. The cumulative extra fiscal stimulus delivered thus far is well within the limit of fiscal prudence. The not-so-good part is that the extra stimulus is unlikely to make much of a difference to the outlook for business.

A second stimulus was clearly on. The expectation earlier was that a stringent lockdown would help bring the virus under control and pave the way for an early return to normalcy. If normalcy returned soon, we could get by with a relatively small stimulus.

These expectations have since been belied. Fifty days from