Kerala’s economy will be hit hard by coronavirus: Finance Minister

Kerala’s economy will be hit hard by coronavirus: Finance Minister

Kerala Finanace Minister Thomas Issac, a former professor of economics feels times ahead are going to be critical as the world comes out of the Covid-19 crisis.. As for the state, he feels the Pinarayi Vijayan government has done well even within a month, looking ahead he feels Kerala should dig deep into it's healthcare image - pharmaceuticals, nurses training, etc.. Q: Can you please explain what this Covid-19 would be for the country in general and Kerala in particular?A: India's economy will shrink by 10 per cent and this will lead to the biggest recession, the country has ever witnessed.. With regards to Kerala, its economy would be worse than the country's, as the remittances will take a huge beating leading to reverse multiplier effect.Q: How long do you think this crisis would last ?A: You can safely forget this fiscal, for sure and it should be the same globally too.Q: What's the way out for this crisis and what would be a prudent handling of finance?A: The Centre should borrow 5 per cent of the GDP from the Reserve Bank of India and give half of it to the states.. The rest should be used by the Centre