ABSTRACT
In the wake of the COVID-19 pandemic, the government of Bangladesh promptly announced and initiated many public policy interventions. Nevertheless, the interventions were inadequate in size and composition and were thwarted by delivery inefficiencies. The study provides a critical overview of the economic policies undertaken to mitigate the adverse repercussions of the pandemic. It discusses the support packages rolled out from March 2020 to April 2021, its taxonomy, and sectoral and communal compositions. This facilitates the study to shed light on the effectiveness of the stimulus packages based on the categories of design, delivery, monitoring and accountability, and modifications for the second wave of the pandemic. Although there has been an expansion in public expenditure, the fiscal incentives were insufficient, while the hybrid measures were not suitable for the marginalized population. Due to the underutilization of fiscal space, the study recommends higher public expenditure on social protection, health, and education. Fiscal interventions are considered more effective than monetary stimulus, with the targeted flow of funds to marginalized households to achieve a larger fiscal multiplier effect.
