Former Union Finance Minister P. Chidambaram has advised the government to increase spending in infrastructure to revive the Indian economy, as the GDP has contracted by 23.9 per cent in the first quarter of the 2020-21 fiscal.
In a series of tweets, the senior Congress leader said that some “concrete steps to stimulate demand and consumption” to revive the economy include transfer of cash to the poorest 50 per cent of the families, food grain to families requiring it, and increased spending on infrastructure projects.
“The food grain stock should be used to pay wages in kind and massive public works started, which will re-capitalise the banks to enable them to lend, and pay the arrears of GST compensation to the states,” the senior Congress leader added.
He said that the economic revival will need money. “Borrow and don’t hesitate on this.”
The Covid-induced economic turbulence and measures to curb its outbreak have heavily dented India’s economy and plunged the country’s GDP to (-) 23.9 per cent during the first quarter (Q1) ended June 2020-21 on a year-on-year basis.
On Thursday, Union Finance Minister Nirmala Sitharaman had directed banks to roll out resolution schemes for Covid-related stress by September 15.