Bhubaneswar: “Distribute cash beyond DBT”, said former chief economic advisor to prime minister Narendra Modi, Arvind Subramanian.
Describing the pandemic as Pralay, Subramanian said food and hard cash need to reach the poor and vulnerable people whether ration card holder/Jandhan account holder or not.
The eminent economist was discussing about the economic consequence of the pandemic in e- Adda hosted by Indian Express from Boston on Tuesday.
Subramanian, who is a visiting lecturer in Harvard Kennedy School, said the government have to arrange the funds for distribution of cash. If required, the government may to the extend of printing notes, he said.
Given the enormity of the crisis, the government should plan keeping in mind that the growth is going to be negative ahead. He suggested that the government should go for stimulus package of Rs 10 lakh code risking a 5% additional deficit to sustain the economy.
Subramanian said that the government and the RBI should focus on credit off take rather than liquidity for support to industries.