There is no denying that the Virus has effected the economies around the world as much as it has hit the masses. The IMF has claimed that the global economy is expected to shrink by over 3 percent in 2020 – the steepest slowdown since the Great Depression of the 1930. In these difficult times, governments across the world are trying to reduce the impact of the slowdown and this is where the fiscal policy of an economy comes into picture. The role of the ‘government expenditure’ during the time of crisis is extremely important. Some argue that during the time of economic slowdown, the government should become austere (spending less). While others say that there should be an economic stimulus. (increase in government expenditure).This was a heated debate in the time of the 2009 financial crisis in The West. This research will discuss the fiscal measures of the government in the COVID era with a comparative study of India and The West.  We will also explore the role of the government sector during the crisis by exploring the austerity vs. stimulus debate in economics in the Indian context.