In accordance with the current economic situation in India, P. Chidambaram has come forward to give some inputs to the Indian government. “Give some cash to the poorest 50% of the families in the country and offer food-grain to those who need it. Use food-grain stock to pay wages in kind and start massive public works, recapitalize banks to enable them to lend and pay the arrears of the GST compensations to states,” advised P. Chidambaram, to boost the measures against the severe downfall of Indian economy due to the COVID-19 pandemic.
Giving out free food grains
Chidambaram suggested distributing free food-grains to the needy people, stating the government will prove itself ‘heartless’ by not doing so. He said how poverty has hit the citizens of lower-economy classes hard, and how numbers of people are running out of cash and standing in queues for hours, to get some free cooked food.
He also suggested transferring Rs. 6000/- to the Jan Dhan and No Frill accounts of the urban poor community and advised us to arrange home deliveries of free food grains.
“There is overwhelming evidence that more and more people have run out of cash and are forced to stand in lines to collect free cooked food. Only a heartless government will stand by and do nothing”, he said.
He finds it to be the responsibility of the government to save the poor class from hunger and insulate their righteousness by transferring cash and providing food grains to the 50% poorest Indians.
“Why can’t government distribute, free of cost, a small part of the 77 million tonnes of grain with FCI to families who need the grain to feed themselves?”, he asked.
Chidambaram has provided an idea for the Modi government to raise money for the poor class. The former finance minister has been seeking cash transfer to the poor class, who are fighting hard to survive amid the lockdown, with months of unemployment. He has suggested the government to release the norms related the budget management to borrow more, and also issue fiscal responsibility. According to him, these steps will accelerate the disinvestment.
He further suggested utilizing the offer of USD 6.5 billion by the International Monetary Fund, the World Bank, and the Asian Development Bank. “All of the above will need money. Borrow. Don’t hesitate”. He also asked the government to monetize the percentage of the shortfall of the economy, as a final course of action.