The FRBM Act provides for an escape clause of 0.5% of GDP, which the government had exercised in the Budget for 2020-21 for additional borrowing from the market New Delhi: The Union government may require the Reserve Bank of India’s help to finance its fiscal deficit when it announces a bailout package for the stressed sectors of the economy reeling under the impact of the Covid-19 outbreak.
Restrictive measures on travel, including the 21-day nationwide lockdown, have brought the economy to a standstill, with aviation, hospitality and tourism sectors suffering a severe blow.
This has forced the government to contemplate a bailout package to prevent job losses and insolvency for some sectors. “The government can float additional security