Kerala Finance Minister Dr T M Thomas Isaac today said that the impact of the coronavirus fiscal policy will be more devastating than demonetisation. “Impact of Covid Fiscal policy to be more devastating than demonetisation. Public expenditure during April-July increase only by 11%, which is usual annual increase of any year. Where’s the fiscal stimulus? Worse, now Centre wants States to cut expenditure,” Thomas Isaac tweeted.
Earlier he had said that Indian economy is in severe recession and hike in public expenditure to revive domestic demand is the need of the hour.
Thomas Isaac has been leading the charge in the criticism against the Centre’s two options given to the states for meeting this year’s compensation shortfall of ₹2.35 lakh crore under the Goods and Services Tax (GST).
On Sunday, Thomas Isaac tested positive for COVID-19 , the first in the cabinet to contract the infection, and has been shifted to the medical college hospital in Thiruvananthapuram.
Kerala on Monday reported just 1,648 cases and 12 more fatalities, taking the infection count to 89,488 and death toll to 359. On sunday the state had reported its highest ever single-day spurt in COVID-19 cases with 3,082 people testing positive for the virus.