In a situation where the government raise the amount of liability that it issues all through an expansionary fiscal policy, supplying bonds in an open market will result into a competition with the private sector in the same time. That led to crowding out which indirectly increase the rates as a result of the raised competition for borrowed funds. The government is facing a challenging situation during the current COVID-19 pandemic, which would significantly impact the efficacy of monetary as well as fiscal policy in the control of economic growth and employment (Diaz-Bonilla, 2020). The UK is an exhausting monetary policy to moderate the lockdown impact, and other actions have been taken in the attempt to control the spread of the infection such as termination of business and the consequential unemployment. The government may face challenges trying to apply the monetary and fiscal policy in achieving employment and economic growth since most businesses have been closed, productivity has decreased, and most people remain jobless which also reduce the output (Paparas, Richter, and Paparas, 2015). Most industries have been significantly affected, which reduce the tax and revenues corrected by the government. The government may also be required to spend more on supplying food and medical services to the citizens (Diaz-Bonilla, 2020). The pandemic has affected the national and global economy, which may make it challenging for the government to apply the fiscal and monetary policy in increasing economic growth and employment.