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