Government needs to step up fiscal support amid second COVID-19 wave: Uday Kotak

Veteran banker Uday Kotak has said the government needs to step up its fiscal effort amid the second wave of the COVID-19 pandemic in the country.

"COVID 2.0 requires the government to step up its support specifically in two areas. First, at the bottom of the pyramid. We must go out and support the bottom of the pyramid through direct interventions more aggressively this time round," the Kotak Mahindra Bank CEO and Confederation of Indian Industry (CII) President told CNBC-TV18.

"Second, we need to broaden the definition of stressed sectors and probably increase the ECLGS scheme from Rs 3 lakh crores to Rs 5 lakh crores. Including the fact that there is something available within the Rs 3 lakh crores itself. We should do it sooner rather than later." he said.

Kotak is of the view that the Budget for FY22 was conservative in its revenue estimates because of which a 6.8 percent fiscal deficit can be managed.