P Chidambaram, Former Finance Minister :
As regards economy, what needs to be done to stem decline & accelerate recovery have been identified by a number of economists, including those who have supported the Modi government in the past. We believe that the following steps need to be taken :
- Impart a large fiscal stimulus to economy, even if it is belated. Such a stimulus alone will put money in people’s hands & stimulate demand.
2. Make direct cash transfers to 20-30% of families at bottom of the economy at least for a period of six months
3. Formulate & implement a rescue plan for MSMEs to revive closed units, recover jobs that were lost, create new jobs for those who have moderate education & skills.
4. Reduce tax rates, especially GST & other indirect tax rates (e.g. on petrol & diesel)
5. Increase government capital expenditure
6. Recapitalize public sector banks immediately and encourage them to lend without fear of investigative agencies probing every loan.
7. Abandon protectionist policies, re-engage with world, have bilateral trade agreements with many countries, remove bias against imports
8. Formulate sector-specific revival packages for Telecom, Power, Mining, Construction, Aviation, Tourism & Hospitality
9. Review & rescind amendments to tax laws that have been widely viewed as tax terrorism
10. Initiate a comprehensive & time-bound review of regulations made by RBI, SEBI, TRAI, CERC, other regulatory agencies that have been regarded as over-regulation
We have no expectations from the govt. Our effort is to highlight policies, incompetent economic management & missed opportunities. If even a part of the agenda that we have set out is accepted by govt, we shall be happy & relieved for sake of Indian people