Ex-PM Manmohan Singh’s three-pronged plan to fix the economy

By: |
August 11, 2020 5:15 AM

Former Prime Minister Dr. Manmohan Singh has given three-pronged approach to revive the economy.

Protect livelihoods

“Higher borrowing is inevitable … even if we have to spend another 10% of GDP … don’t be shy of borrowing but we must be prudent on how we use it”.

Let the barrier for the option of printing money to finance the deficit “be very high and use it as a last resort”.

Capital for business

Important to make adequate capital available for local businesses through a “government-backed credit-guarantee programme”

Fix financial sector

This can be done through a policy of “institutional autonomy and processes”

Do you know What is Cash Reserve Ratio (CRR), Finance Bill, Fiscal Policy in India, Expenditure Budget, Customs Duty? FE Knowledge Desk explains each of these and more in detail at Financial Express Explained. Also get Live BSE/NSE Stock Prices, latest NAV of Mutual Funds, Best equity funds, Top Gainers, Top Losers on Financial Express. Don’t forget to try our free Income Tax Calculator tool.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1India may increase import duty on a chemical from Korea
2RBI gives more time to states to avail additional market borrowing, overdraft facility
3India among worst performing economies in world; stimulus inadequate: Abhijit Banerjee