As economic activities have come to a halt due to coronavirus-induced lockdown in the country, the government’s fiscal stimulus may play a major role in combating the situation. While it will make a severe dent in the fiscal deficit numbers, to keep the economy running is on the centre’s priority so far. Given the dominance of the informal sector in the economy along with poor social security, the sudden stop in economic activity along with a prolonged period of social distancing will require fiscal and monetary policy support, said Kotak Economic research report. The center and state governments need to provide support to livelihoods and businesses impacted by Covid-19, in spite of a weak revenue outlook, it added.