Finance Ministry Also Feared A Decline In Economic Growth
Finance Ministry also feared a decline in economic growth, said this in the monthly report.
Now the Finance Ministry is also believing that the second wave of Corona may have an impact on the economic development of the country.
The monthly report released by the Finance Ministry on Friday said that the second wave of Corona is expected to cause a decline in the economic growth rate for the first quarter (April-June, 2021) of the current financial year.
However, the second wave will have little effect on economic growth as compared to the first wave of Corona.
The Finance Ministry is expected to once again support the economy and rural economic activities from the agricultural sector.
In the monthly report released for April by the Department of Economic Affairs, the number of daily reported cases in the second wave of Corona appears to be reaching a new peak.
The rate of daily death and infection is posing a challenge to the economy’s recovery.
There is a risk of local growth falling due to local restrictions in the first quarter of the current financial year.
However, experiences from other countries suggest that the ban on movement has little to do with the decline in economic activity.
People have learned the art of continuing economic activity while living in the middle of Corona. Therefore, the second wave will have an equal impact on economic development as compared to the first wave.
The report also said that once the record production of food grains and the normal monsoon forecast this year, the agriculture sector will prove to be very helpful for the economy once again.
In the first quarter of the last financial year, when the GDP had registered a decline of 23.9 percent, there was a growth in the agricultural sector.
The demand for goods in the rural sector has also remained strong. The Finance Ministry says that the government has increased revenue from direct and indirect taxes.
