Chennai: Former Union Finance Minister and senior Congress leader P Chidambaram has urged the government to borrow more to help stimulate demand and revive the country’s economy.
He also suggested some measures to raise money which include relaxing FRBM norms, accelerating disinvestment and borrowing money from global banks.
“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 tweeted.
“All of the above will need money. Borrow. Don’t hesitate,” he said and added: “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.”