Borrow more to stimulate demand, revive economy: P Chidambaram to Centre

The senior Congress leader sought transferring cash to the poorest 50 percent of families and paying arrears of GST compensation to states

Press Trust of India September 06, 2020 16:25:13 IST
Borrow more to stimulate demand, revive economy: P Chidambaram to Centre

New Delhi: Former Union finance minister P Chidambaram on Sunday suggested the government to 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 transferring cash to the poorest 50 percent 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.

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.

Updated Date:

also read

e-Shram generates hope for unorganised sector workers, but hardships won't disappear overnight
Business

e-Shram generates hope for unorganised sector workers, but hardships won't disappear overnight

While the economy has shown signs of recovery after contracting in the first two quarters of the 2020-21 financial year, experts say the road to complete recovery would be a long one

Swiggy, Zomato to collect 5% GST from customers starting 1 Jan, 2021; here's how much you will have to pay
Business

Swiggy, Zomato to collect 5% GST from customers starting 1 Jan, 2021; here's how much you will have to pay

Nirmala Sitharaman made the announcement after the GST Council meeting, which has made the decision for ease in tax administration.

Not right time to bring fuel products under GST, says Nirmala Sitharaman
Business

Not right time to bring fuel products under GST, says Nirmala Sitharaman

The Council decided to continue keeping petrol and diesel out of the GST purview as subsuming the current excise duty and VAT into one national rate would impact revenues