Why public spending is the cure for the pandemic

Building Material

Last year in December 2019, we were dangerously treading close to the lows in GDP, and the project pipeline continued its downward spiral with only a quarter of projects completed at Rs.764 billion as against a target of Rs.4 trillion worth of completions scheduled for the quarter ended March 2020.

The private sector has had mixed results. The topline of companies has declined in both the first and second COVID quarters, by 6.3 per cent in Q2FY21 and 27 per cent in Q1FY21. 
Of a sample of 3,095 companies, as per a Business Today study, aggregate profit (excluding extraordinary transactions and banks and financial services) rose to 37.6 per cent compared to a 54 per cent plunge in the previous quarter, on a yearly basis. This was obviously a resu