• State Bank economists have published a report recently on monetary aspects.
• The economists opined that an easy monetary policy will be ineffective to push the sagging growth engine and that what is needed is more direct and quicker fiscal measures.

More Findings of the report:

• The financial system is “in need for some serious repair” and the government should use the forthcoming budget for the same.
• The fiscal channel is more direct and quicker and financial system is in need of some serious repair.
• The government would do better with reasonable fiscal deficit assumptions and should be very clear of the fiscal consolidation path.
• Growth plummeted to a nearly five-year low at 5.8% for the March quarter, pulling down the full-year GDP for FY19 to a low 6.8%.
• There is need of immediate attention to revive the fortunes of the financial system.
• The note warned there were some “limiting factors” like the Food Corporation’s massive borrowings from the National Small Savings Funds, which is already in excess of ₹2 lakh crore or 1% of GDP.