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.

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

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.