P Chidambaram flags inability of PM Garib Kalyan Yojana to boost demand & revive economy

On Wednesday, Congress Rajya Sabha MP P Chidambaram claimed that PM Garib Kalyan Yojana offered only token relief to people amid coronavirus-induced lockdown. Union Finance Minister Nirmala Sitharaman h unveiled PMGKY worth Rs.1.70 lakh crore on March 26 for providing free ration and cash payment to women, poor senior citizens, and farmers. He questioned  allocation of only Rs.1000 per person via  National Social Assistance Programme.

Moreover, he claimed that a female Jan Dhan account holder would have found it very difficult to man household on Rs.1,500 over a period of three months. He also alleged that it was t possible for a migrant and his family to sustain on 5 kg foodgrains per month. According to him, money sanctioned under  PM Garib Kalyan Yojana could t act as a stimulus to boost demand and revive ecomy.

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Chidambaram suggests measures to revive ecomy

Amid India's GDP contracting by 23.9%, Chidambaram on September 6 suggested measures to stimulate demand and revive ecomy. First, he urged Centre to transfer some cash to poorest 50% of families. This has been Congress Party's consistent demand to boost consumption. While Union government has alrey extended free ration scheme- Prhan Mantri Garib Kalyan Anna Yojana till vember, Chidambaram opined that food grains should be offered to all families irrespective of ir ecomic status.

He said that Centre should start massive public works and increase spending on infrastructure projects. He ded that huge food grain stock could be used to pay ws in kind to workers. Furrmore, he called upon NDA government to recapitalize banks enabling m to lend more. Rajya Sabha MP insisted that states should be paid ir GST compensation dues. 

While ackwledging that his recommendations will require a lot of money, Chidambaram vised Centre to borrow liberally. For instance, he pointed out that Fiscal Responsibility and Budget Manment rms could be temporarily relaxed. ditionally, he requested government to accelerate disinvestment. senior Congress leer contended that money could be raised by borrowing from International Monetary Fund, World Bank and Asian Development Bank. He mentioned that monetising part of deficit was ar option that Centre could consider. 

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