The markets were expecting the stimulus 2.0 last week itself but it is high time, the government announces another stimulus for the economy. The result could be a wider fiscal deficit but that is a risk worth taking. Even the former RBI governor, D Subbarao, warned that the combined deficit of the centre and the states could go as high as 14% of GDP in fiscal year 2020-21. Even though this move risks sovereign downgrades, Subbarao is categorical that the size of quantum of stimulus till date has been inadequate. He has called for aggressive stimulus 2.0 even at the cost of fiscal deficit running higher for the sake of pump priming. Subbarao has actually called for additional stimulus in 3 areas; expanding and sustaining livelihood means, rescuing the financial sector and for boosting exports. The stimulus 2.0 is expected this week after FM speaks to the banks on Monday.