New Delhi, Jan 17 (TIWN) Relief to industries struggling to recover, levy of Covid cess on industries that bounced back, and reducing liquidity by increasing investment-linked deductions could be among the main themes of the Union Budget for 2022-23.

As per Budget expectations detailed by Taxmann, last year the government had announced multiple stimulus packages to rejuvenate the economy impacted by the Covid-19 pandemic. 

The government followed the counter-cyclical fiscal policy to stabilise the business cycle.

This policy requires the government to reduce spending/increase taxes in good times and increase spending/reduce taxes in bad times.  To a large extent, these policies helped the Indian economy recover from the recession.

Typical economic recoveries happen in V, W, Z, U and L shapes. However, economists are starting to think the recovery from Covid-19 might be K-shaped.