Former Union finance minister P Chidambaram on Sunday suggested the government borrow more to help stimulate demand and revive the country’s economy.
The senior Congress leader also suggested some measures to raise money which include relaxing FRBM norms, accelerating disinvestment and borrowing money from global banks.
As part of his measures to revive the economy, he sought to transfer cash to the poorest 50 per cent of families, offering them foodgrains and increasing spending on infrastructure, besides paying arrears of GST compensation to states. “Here are some concrete steps to stimulate demand/consumption and revive the economy: Transfer some cash to the poorest 50 percent of families. Offer food grain to all families, those who need will take it. Increase spending on infrastructure projects. Use food grain stock to pay wages in kind and start massive public works. Recapitalize banks to enable them to lend and Pay the arrears of GST compensation to the States,” he said on Twitter.
“All of the above will need money. Borrow. Don’t hesitate,” he suggested. “Here are some concrete steps to raise money: Relax the FRBM norm and borrow more this year. Accelerate disinvestment. Use the offer of USD 6.5 billion by IMF, WB, ADB etc. As a last resort, monetise part of the deficit,” he tweeted.
Chidambaram has been urging the government to take concrete measures to revive the economy and has called upon it to provide GST compensation to states, as promised to them at the time of GST implementation.