States and firms executing infrastructure projects faster should be given greater rewards and this would be an ideal form of stimulus packages during the economic slowdown, according to Arun Shourie, former union minister.
Shourie, who was in the city on Monday to attend an interactive session on the growth path of the Indian economy, organised by the Indian Chamber of Commerce, said the bailout packages announced so far were merely populist measures not doing the real little good to the economy.
The former Union minister said stimulus packages should be specific and project based with well-laid-out criteria to assist firms that were in real trouble.
But before announcing such packages for companies facing crisis owing to bad business decisions, the impact they were having on the over all economy should be considered, he added. However, “a company like Satyam is an exception”.
“Greater rewards to states and firms, which execute infrastructure projects faster, would be an ideal form of stimulus packages during economic slowdown,” Shourie said.
Bashing the UPA government, he said it had not carried forward any of the reforms though the NDA government and the one led by PV Narashima Rao had stuck to reformist policies.
The senior BJP leader said the “swelling nature” of the off-budget expenditures showed the weakness of the government and those expenditure items like subsidies for oil and fertiliser should have a reflection in the budget.
Shourie felt that the government should not go for pricing of oil, gas and fertiliser and leave those for the market to decide.