Former finance minister Chidambaram advises govt on economic revival
Tribune News Service
New Delhi, September 6
Congress leader and former finance minister P Chidambaram on Sunday offered advice to the government on ways to revive the economy by spurring demand and consumption and revive the economy.
Chidambaram suggestions included transfer of cash to the poorest 50 per cent of families, offer food grain to all families, those who need will take it and increase spending on infrastructure projects.
He also asked the government to use food grain stock to pay wages in kind and start massive public works, recapitalise banks to enable them to lend, pay the arrears of GST compensation to the states.
4. Use food grain stock to pay wages in kind and start massive public works
5. Re-capitalize banks to enable them to lend
6. Pay the arrears of GST compensation to the States
All of the above will need money. Borrow. Don’t hesitate.
— P. Chidambaram (@PChidambaram_IN) September 6, 2020
“All of the above will need money. Borrow. Don’t hesitate.” The former finance minister also tweeted some steps to raise money.
Here are are some concrete steps to raise money:
1. Relax the FRBM norm and borrow more this year
2. Accelerate disinvestment
3. Use the offer of USD 6.5 billion by IMF, WB, ADB etc
4. As last resort, monetise part of the deficit
— P. Chidambaram (@PChidambaram_IN) September 6, 2020
“Relax the FRBM norm and borrow more this year, accelerate disinvestment, use the offer of USD 6.5 billion by IMF, WB, ADB and as last resort, monetise part of the deficit,” said Chidambaram.
