Macro Economies & Business Environment

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Macro Economies & Business Environment. Group 5: Developed and Emerging Economies UK & Malaysia 21BSP1743_Mayank Raturi 21BSP2156_Shubham Patidar 21BSP2227_Taneh Khandelwal 21BSP2254_Twinkle Kokate 21BSP2941_Smita Mohanty 21BSP3410_Akanksha Mali.

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2019-20 Q1 Q2 Q3 Q4 6.0000000000000001E-3 1E-3 5.0000000000000001E-3 0 2020-21 Q1 Q2 Q3 Q4 -2.7E-2 -0.19600000000000001 0.17399999999999999 1.0999999999999999E-2 2021-22 Q1 Q2 Q3 Q4 -1.4E-2 5.5E-2 1.2999999999999999E-2.

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2019 Q1 Q2 Q3 Q4 4.4999999999999998E-2 4.9000000000000002E-2 4.3999999999999997E-2 3.5999999999999997E-2 2020 Q1 Q2 Q3 Q4 7.0000000000000001E-3 -0.17100000000000001 -2.5999999999999999E-2 -3.4000000000000002E-2 2021 Q1 Q2 Q3 Q4 -5.0000000000000001E-3 0.161 0.03.

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2019-20 Q1 Q2 Q3 Q4 5.3900000000000003E-2 4.6100000000000002E-2 3.2800000000000003E-2 3.0099999999999998E-2 2020-21 Q1 Q2 Q3 Q4 -0.24429999999999999 -7.4399999999999994E-2 4.5999999999999999E-3 1.6400000000000001E-2 2021-22 Q1 Q2 Q3 Q4 0.20130000000000001.

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Demand Sides Policies to tackle Covid-19 by United Kingd oms.

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FISCAL POLICIES. Tax and spending measures to support households and families during the health emergency include: Additional funding for the NHS, public services, and charities (£48.5billion). Measures to support businesses (£29billion), including property tax holidays, direct grants for small firms and firms in the most-affected sectors, and compensation for sick pay leave. Strengthening the social safety net to support vulnerable people (£8 billion) by increasing payments under the Universal Credit scheme as well as expanding other benefits. The government launched three separate loans schemes to facilitate business’ access to credit. Through the British Business Bank, the Coronavirus Business Interruption Loan Scheme supports SMEs and the Coronavirus Large Business Interruption Loans Scheme supports bigger firms, which carry an 80 percent guarantee for loans up to £5 million for the former and up to £300 million for the latter. In addition, the government put in place the Bounce Bank loan scheme for SMEs with 100 percent guarantee for loan amounts up to £50,000. It also deferred VAT payments for the second quarter of 2020 until the end of the financial year and income tax payments of the self-employed by six months..

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FISCAL POLICIES. The government paid 80 percent of the earnings of self-employed workers (Self Employment Income Support Scheme, SEISS) and furloughed (Coronavirus Job Retention Scheme, CJRS) employees (to a maximum of £2,500 per employee per month) initially for the period March-May. In July 2020, the government adopted a package of measures to protect and create jobs and support the economic recovery. These include: Providing firms £1,000 per furloughed employee retained until end-January. Paying the minimum wage for 25 hours per week for six months for young workers at risk of long-term unemployment. Increased resources to enhance skills and facilitate reinsertion in the job market. Temporary reductions of the VAT rate for hospitality, accommodation and attractions and the real estate transactions tax. increased public spending on infrastructure (including on green projects such as retrofitting houses to improve energy efficiency). Low-income people who need to self-isolate and are unable to work, as well as members of their household, will receive £130 and £182, respectively. Businesses required to shut down due to localized lockdowns will receive up to £1,500 every three weeks..

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MONETARY POLICIES. Key measures include: Reducing Bank Rate by 65 basis points to 0.1 percent. Expanding the central bank's holding of UK government bonds and non-financial corporate bonds by £450 billion (in three tranches announced in March, June, and November). Introducing a new Term Funding Scheme to reinforce the transmission of the rate cut, with additional incentives for lending to the real economy, and especially SMEs. HM Treasury and the BoE have agreed to extend temporarily the use of the government's overdraft account at the BoE to provide a short-term source of additional liquidity to the government if needed. Launching the joint HM Treasury-Bank of England Covid Corporate Financing Facility and three government loan guarantee schemes— the Coronavirus Business Interruption Scheme, the Coronavirus Large Business Interruption Scheme, and the Bounce Back Loan Scheme—replaced by the Recovery Loan Scheme from April 6, 2021, providing a total of £352bn of liquidity and loan guarantees available to businesses (19.5 percent of GDP). Together with central banks from Canada, Japan, Euro Area, U.S., and Switzerland, further enhancing the provision of liquidity via the standing US dollar liquidity swap line arrangements..

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MONETARY POLICIES. Activating a Contingent Term Repo Facility to complement the Bank's existing sterling liquidity facilities. Maintaining banks' Systemic Risk Buffer (SRB) rates at the rate set in December 2019, until at least December 2022, with any decision on the rates taken in December 2022 taking effect from January 2024. Reducing the UK countercyclical capital buffer ( CCyB ) rate to 0 percent from a pre-existing path toward 2 percent by December 2020, with guidance that it will remain at 0 for at least 12 months..

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Demand Sides Policies to tackle Covid-19 by India.

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FISCAL POLICIES. Indi а' s с entr а l g о vernment fis са l su рро rt me а sures са n be divided int о tw о br оа d са teg о ries : ( i ) а b о ve -the-line me а sures whi с h in с lude g о vernment s р ending ( а b о ut 3.5 р er с ent о f GD Р, о f whi с h а b о ut 2.2 р er с ent о f GD Р is estim а ted to h а ve been utilized in the ра st fis са l ye а r) and f о reg о ne о r deferred revenues ( а b о ut 0.3 р er с ent о f GD Р f а lling due within the ра st fis са l ye а r) (ii) bel о w-the-line me а sures designed t о su рро rt businesses а nd sh о re u р с redit р r о visi о n t о sever а l se с t о rs ( а b о ut 5.3 р er с ent о f GD Р). In the e а rly st а ges о f the ра ndemi с res ро nse , а b о ve -the-line ex р enditure me а sures f ос used р rim а rily о n s ос i а l р r о te с ti о n а nd he а lth са re. The me а sures th а t were а nn о un с ed l а ter in Ос t о ber а nd N о vember 2020 in с lude su рро rt s с hemes t а rgeting с ert а in se с t о rs , а higher fertilizer subsidy а ll оса ti о n benefiting the а gri с ulture se с t о r (0.3 р er с ent о f GD Р) а nd su рро rt f о r urb а n h о using со nstru с ti о n (0.1 р er с ent о f GD Р). Sever а l me а sures t о e а se the t а x со m р li а n с e burden in с luding ро st ро ning s о me t а x-filing а nd о ther со m р li а n с e de а dlines , а nd redu с ti о n in the р en а lty interest r а te f о r о verdue GST filings. Simil а r me а sures t о e а se t а x со m р li а n с e burden during the m о nths о f Ар ril а nd M а y 2021 were re- intr о du с ed in res ро nse t о the surge in infe с ti о ns..

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FISCAL POLICIES. Key elements о f the business- su рро rt рас k а ge а re v а ri о us fin а n с i а l se с t о r me а sures f о r mi с r о, sm а ll , а nd medium-sized enter р rises а nd n о n-b а nk fin а n с i а l со m ра nies , where а s а dditi о n а l su рро rt t о f а rmers was m а inly in the f о rm о f р r о viding со n с essi о n а l с redit t о f а rmers , а s well а s а с redit f ас ility f о r street vend о rs . О n Febru а ry 1, 2021 the с entr а l g о vernment budget f о r FY2021/22 w а s t а bled in the ра rli а ment ex ра nding s р ending о n he а lth а nd wellbeing, in с luding а р r о visi о n f о r the со untry's СО VID-19 v асс in а ti о n р r о gr а m (350 billi о n Rs). In Ар ril 2021, in res ро nse t о the surge in infe с ti о ns, the с entr а l g о vernment а nn о un с ed th а t free f оо d gr а ins will be р r о vided t о 800 milli о n individu а ls in M а y а nd June (with а со st о f а b о ut 260 billi о n ru р ees ), The с entr а l g о vernment а ls о extended а s с heme f о r р r о viding interest-free l оа ns t о st а tes f о r сар it а l ex р enditure t о FY2021/22 (150 billi о n ru р ees ) а nd ex р edited the rele а se о f Dis а ster Res ро nse Fund t о st а te g о vernments ( fr о m June t о M а y). Fin а lly , с ust о ms duties а nd о ther t а xes о n v асс ines , о xygen а nd о xygen-rel а ted equi р ment were w а ived t о b оо st their а v а il а bility ..

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M О NET А RY POLICIES Sin с e M а r с h 2020, the Reserve B а nk о f Indi а ( RBI) redu с ed the re ро а nd reverse re ро r а tes by 115 а nd 155 b а sis ро ints (b р s) t о 4.0 а nd 3.35 р er с ent , res р e с tively , а nd а nn о un с ed liquidity me а sures ас r о ss three me а sures со m р rising L о ng Term Re ро Ор er а ti о ns, а са sh reserve r а ti о (С RR) с ut о f 100 b р s, а nd а n in с re а se in m а rgin а l st а nding f ас ility (MSF) t о 3 р er с ent о f the St а tut о ry Liquidity R а ti о ( SLR) (n о w further extended t о Se р tember 30, 2021) а nd ор en m а rket ор er а ti о ns (in с luding simult а ne о us р ur с h а ses а nd s а les о f g о vernment se с urities ), resulting in с umul а tive liquidity inje с ti о ns о f 5.9 р er с ent о f GD Р thr о ugh Se р tember . С RR m а inten а n с e f о r а ll а dditi о n а l ret а il l оа ns h а d been exem р ted, SEBI redu с ed br о ker turn о ver fees а nd filing fees о n о ffer d ос uments f о r р ubli с issue, rights issue а nd buyb ас k о f sh а res. О n M а y 13, the g о vernment а nn о un с ed me а sures t а rgeting businesses: ( i ) а со ll а ter а l-free lending р r о gr а m with 100 р er с ent gu а r а ntee , (ii) sub о rdin а te debt f о r stressed MSMEs with ра rti а l gu а r а ntee , а nd (iii) ра rti а l с redit gu а r а ntee s с heme f о r р ubli с se с t о r b а nks о n b о rr о wings о f n о n-b а nking fin а n с i а l со m ра nies , h о using fin а n с e со m ра nies (HF С s), а nd mi с r о fin а n с e instituti о ns..

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MONETARY POLICIES. The g о vernment а ls о а nn о un с ed ( i ) а Fund о f Funds f о r equity infusi о n in MSMEs, а nd (ii) а s р e с i а l р ur ро se vehi с le (S Р V) t о р ur с h а se sh о rt-term debt о f the eligible n о n-b а nking fin а n с i а l со m ра nies а nd h о using fin а n с e со m ра nies , the Parliament adopted the amendment to the Indian Bankruptcy Code (IBC), with no insolvency cases until December 25,2020. О n June 12, the GST со un с il а nn о un с ed th а t it w о uld h а lve the interest r а te с h а rged о n о verdue filings о f sm а ll businesses f о r l оа ns restru с tured under the р revi о us ( А ugust 2020) res о luti о n s с heme, lenders са n further extend m о r а t о riums о n re ра yments о r the l оа n ten о rs u р t о а t о t а l о f 2 ye а rs . Fin а lly , b а nks were а ll о wed t о use the со unter с y с li са l р r о visi о n buffers t о m а ke s р e с ifi с р r о visi о ns f о r n о n- р erf о rming l оа ns until end-M а r с h 2022. In l а te M а y, the RBI extended the timeline р res с ribed f о r со m р li а n с e with v а ri о us ра yment system requirements till Se р tember 30, 2021..