“If this is the case as it seems to be so, this is, in reality, not an expenditure of 2020-21 but a settlement of past dues of the government. It increases government borrowing but it does not increase spending in a sense that could spur demand,” CMIE added.

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Anil Kulkarni7 minutes ago

CMIE is like a one-eyed jack. It sees just one side of the story and makes a lot of noise as if it has made a huge revelation. it does not analyze the income and expenditure in totality. If the Govt was to spend more, where would it get the revenues from? CMIE argues without objectivity hence its argument loose any impact or meaning. The objective boils down to be to just be critical without objectivity.

Govt spending in FY21 much less than projected, will not spur demand: CMIE

According to CMIE, the big numbers of 2020-21 were used largely to regularise government books of accounts and partly to provide relief and not to revive the economy.

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