New Delhi: Former Union Finance Minister P. Chidambaram on Sunday suggested the government borrow more to stimulate demand and help revive the country’s economy. Senior Congress leader (P. Chidambaram) also suggested some measures to raise funds, including easing of FRBM norms, accelerating disinvestment, and borrowing money from global banks. As part of measures to revive the economy, he demanded transferring cash to 50 percent of poor families, providing them food grains, and increasing spending on infrastructure, besides paying the Goods and Services Tax (GST) compensation of the states.
He (P. Chidambaram) tweeted, “There are some concrete steps that can be taken to encourage demand and consumption and revive the economy, transfer some cash to the poorest 50 percent of the families.” Give food to all the families who need it. Increase expenditure on infrastructure projects. Use food grains as a commodity for the payment of wages. Start large public works. Recapitalize the banks so that they can lend more and pay the GST compensation of the states. ”
Chidambaram (P. Chidambaram) said, “All these will require money. Take a loan do not hesitate.” He suggested, “Some concrete steps to raise funds can be of this type. Simplify the provisions of FRBM and raise more debt this year. Speed up disinvestment. Use the $ 6.5 billion offer from the International Monetary Fund, World Bank, Asian Development Bank, etc. As a last resort, monetize the fiscal deficit (take the money directly to the Reserve Bank). ”
