Question

The government is adopting monetary and fiscal policies to address the likely negative consequences of COVID 19 on the economy. Discuss what these measures are and how they are likely to be effective. [12 marks]

Answer 1

GOVERNMENT MEASURES FOR ADDRESSING CONSEQUENCES OF COVID 19

We know that the covid 19 effect is very bad for our financial system and it affects the global economy in a negative manner. It is very important to control this pandemic otherwise our financial and money market will face many consequences in the coming days. So inorder to avoid these consequences the Government takes many measures to get away from this situation. This include fiscal policies and monetary policies implemented by the government. These policies will help to minimize the consequences of this outbreak.

  The Government’s Emergency Committee for COVID-19 Prevention meets every two days to assess the situation and initiate relevant actions. They provide many funds to every sector of the economy as per the needs of each sector. Along with this government provide all facilities and establishing new highly advanced technologies to prevent this out break.To ease tax compliance, it extended filing deadlines by two months and this will be a relief for the taxpayers. When we are considering the econmic factors we can see the demand reductionand there will also be widespread supply chain disruptions. The production is largely reduced and it will affect the industries. Not only the production the service sector is currently facing the big problem now a days. Now the transport, tourism, hospitality sectors are in the worst condition ever. This sectors now shoeing a major negative impact to the economy. So the government now gives many monetary benefits and trying to make the production if there is any chance by following the guidelines. So if it is possible then they try to make some production and earn revenue through the major revenue sources. So these are some measures which government take to control this pandemic situation and regulate our economy and make it stable.

ThankYou....