Chidambaram welcomes the Center’s decision to borrow an additional 4.2 lakh cr

NEW DELHI: On Saturday, senior congress leader P Chidambaram welcomed the Center’s decision to borrow an additional 4.2 lakh crore and said it should be used to provide relief to the poor and restart the economy. “After resisting our appeals, especially through CEA statements, the government finally decided to borrow an additional Rs 4.2 lakh crore, bringing the projected fiscal deficit to 5.38 percent. We welcome the decision,” it said in a statement. .

However, the top congressional leader said: “It is not enough to borrow more unless the amount is used to provide relief to the poor and restart the economy. We look forward to the revised spending budget for 2020-21.”

Echoing similar sentiments presented by several eminent economists, he called on the central government to remove its reserves and borrow more in 2020-21.

“In our view, the budgeted fiscal deficit of 3.5 percent should not be a constraint in these extraordinary times,” it said in the statement.

The government revised its debt target on the gross market from Rs 7.8 lakh crore to Rs 12 lakh crore on Friday in view of the coronavirus pandemic.

“The estimated gross indebtedness of the market in the financial year 2020-21 will be Rs 12 lakh crore instead of Rs 7.80 lakh crore according to BE 2020-21. The previous revision of the loans has been necessary due to the COVID-19 pandemic “The Ministry of Finance had said in a statement.