Former Union finance minister P Chidambaram has suggested the government to borrow more to help stimulate demand and revive the country's Gross Domestic Product (GDP) growth. He also suggested some measures to raise money which include relaxing FRBM norms, accelerating disinvestment and borrowing money from global banks.
Chidambaram sought transferring cash to the poorest 50 percent of families, offering them foodgrains and increasing spending on infrastructure. Besides, he has called upon it to provide Goods and Services Tax (GST) compensation to states, as promised to them at the time of GST implementation. He further said the government needs to start massive public works in order to boost economic activity and should pay wages in terms of food grains.
To enhance the lending capacity of banks, he said the government must re-capitalise them. He also said that the government must relax the Fiscal Responsibility and Budget Management (FRBM) norms to borrow more this year. He noted that the divestment plan should also be expedited and added that the government must utilise the offer from international organisations like International Monetary Fund, World Bank and Asian Development Bank.
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