P Chidambaram Economy India News

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 : P Chidambaram

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 :

  1. 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

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