The infrastructure push

Higher expenditure will be needed to sustain recovery

The surge in new infections has increased risks for the ongoing economic recovery. A rapid rise in cases has forced state governments to bring back restrictions on public mobility. The Delhi government, for instance, has decided to impose the curfew during weekends, aside from other restrictions. A surge in cases and lower public mobility are bound to affect economic activity. Although, as witnessed during the second wave in 2021, the impact may not be as severe as that in 2020, it would still result in output loss and weaken the overall recovery. As more clarity emerges in the coming days,