HYDERABAD: Crises come whether or not countries are ready. But the ongoing economic contagion due to Covid-19 has governments scurrying for fiscal solutions albeit within limited means.While we don’t know when and how it will end, one thing’s clear. That, health pandemics can occur just one time, but its economic devastation can last a lifetime. That bitter reality was acknowledged by none other than the IMF, which compared the Great Lockdown to the Great Depression of 1930s.
Among Asean and Saarc nations, every economy announced stimulus packages though the quantum was based on their fiscal might or the extent of their economic suffering or both.If export and tourism-dependent countries like Singapore, Thailand and Vietnam are spending 9-12% of their GDPs, others like Indonesia and Maldives are committing over 3%.
India, too, mounted its first fiscal stimulus aggregating 0.8% of the GDP (4% including monetary measures), but is likely to announce one more package between 3% and 10% of the GDP giving the much-needed relief to the industry.
The inter-connectedness among nations — be it for trade, tourism or labour force — meant that even tiny nations like Laos, Brunei and Cambodia aren’t spared even though the virus spread itself appears limited.
Myanmar announced 2% advance tax exemption on exports, while Laos is foregoing profit tax from micro firms for 3 months.