How to spend what doesn't exist?

The incidence of coronavirus infection in Mumbai slums is 57% with low mortality, showing slums are reaching herd immunity, wrote SA Aiyar. India had one of the most stringent lockdowns, its gross domestic product (GDP) contracted by the highest rate of 23.9% among major economies in the April-June quarter, the fiscal stimulus declared by the government is only about 1% of GDP, according to analysts, and our caseload is now the highest in the world at 100,000 per day, but could be more than twice that number. "That strengthens the case for phasing out lockdowns quickly, while encouraging masks, social distancing and isolation of the infected to the extent possible," wrote Aiyar. "Meanwhile the government should greatly increase cash handouts to the masses through MNREGA and Jan Dhan Accounts. The poor are worst-hit and most likely to spend additional cash, boosting the economy. Richer folk are more cautious and less likely to spend." "GoI's (government of India) reluctance to do more today seems partly because it wants to conserve resources for a possible future stimulus. This strategy is self-defeating," wrote Prof Raghuram Rajan. He also recommends increase in MNREGA, cash transfers to the poor and relief in goods and services tax (GST) for small and medium enterprises (SME). Prime Minister Narendra Modi announced a scheme at a cost of Rs 200.50 billion "to boost production and exports in the fisheries sector" and "also launched several other initiatives in the fisheries and animal husbandry sectors in Bihar, a state which is heading for the assembly polls in October-November". According to the Finance Ministry, more than 420 million people have received a total of Rs 688.20 billion in financial assistance. The government is to infuse Rs 1.2 trillion into power distribution companies (Discoms) so that they can pay their outstanding dues till June. The "total outstanding dues of Discoms payable to generators/creditors as of February 2019 stood at an alarming Rs 418.81 billion", wrote Ajai Nirula. The government is considering extending the MNREGA program to cities to help the urban poor. The program will be rolled out in smaller cities initially at a cost of Rs 350 billion. "For April-July, the Center's fiscal deficit stood at Rs 8,21 trillion, or 103 percent of 2020-21 budget estimates of 7.96 trillion, compared to 77.8% for the same period last year, official data showed." Because of economic contraction tax collections have fallen off a cliff which is "likely to force the government to borrow more, but it will consider monetising its deficit as a last resort". Easy to advise to spend more. Can't spend what's not there. Quandary.