Owing to severe global recession which has left thousands jobless and various multinational companies going bankrupt, both are looking for means to meet their financial expenses. At the same time natural disasters have only aggravated this adverse situation which has resulted in acute inflation. Prices of essential commodities have sky rocketed which is having an adverse effect on poor people who don't have the means to meet their financial expenses. In this grave situation government grants are a must for companies who have lost millions of rupees and thereby could repay their debts in the form of financial grants from the government.

Economy of a particular country matters a lot. If a company, more so a government entity nears bankruptcy which could decrease the economy of that country, then it again becomes the primary responsibility of the government to take out that company from the troubled waters in the form of issuing certain grants. The recent case in United States of America where the President gave millions of rupees in grants to a well renowned bank, same practice was followed in India where the Prime Minister ordered government grant to the national airline company who both were under tremendous debt.

Every company needs to pay the debt no matter what are the circumstances, if the circumstances are detrimental for the company to pay the debt, then it becomes the responsibility of the government to give adequate financial grant so that the company clears all its debts which could directly enhance the performance of the company and at the same time would improve the overall economy of the country.

Any business who has to sustain itself for the longer run has to have some sort of adequate amount of money to pay its debt in times of recession or loss failing which only the government can come handy in fulfilling that objective for the overall economy to grow.