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P Chidambaram advises govt on economic revival

Congress leader and former finance minister P Chidambaram on Sunday offered advice to the government on ways to revive the economy by spurring demand and consumption and revive the economy.

Chidambaram’s suggestions included the transfer of cash to the poorest 50 percent of families, offer food grain to all families, those who need will take it and increase spending on infrastructure projects.

He also asked the government to use food grain stock to pay wages in kind and start massive public works, recapitalize banks to enable them to lend, pay the arrears of GST compensation to the states.

“All of the above will need money. Borrow. Don’t hesitate.” The former finance minister also tweeted some steps to raise money.

“Relax the FRBM norm and borrow more this year, accelerate disinvestment, use the offer of USD 6.5 billion by IMF, WB, ADB and as last resort, monetise part of the deficit,” said Chidambaram.