We’ve no option but borrow, but let us do so prudently

These are tough times. Businesses have been shuttered, millions of people have lost their jobs and broke families are now skipping meals. The private sector has been brow-beaten. It will take time before activities in the hospitality sector get back to their pre-Covid levels following massive cancellation of bookings.

Pubs, bars and other entertainment joints as well as schools are still closed and it is not clear when they will be allowed to operate. Private investors are scared of sinking their money in an uncertain business environment, and have opted to put their money in long-term assets such as government securities. With a distressed private sector, the government cannot get its taxes.