New Delhi, 29 June. Finance Minister Nirmala Sitharaman on Monday announced a package to support the corona pandemic-hit economy. Under the booster dose to the Indian economy, a package of Rs 1.1 lakh crore has been announced for the Kovid affected sector. The Modi government hopes that the sectors that have been lifeless after the lockdown will get a lot of profit from this. At the same time, former Finance Minister and senior Congress leader P Chidambaram has expressed his reaction on the Finance Minister’s Corona affected relief package on Tuesday. Chidambaram said the answer to the “crisis” is to put money in the hands of the people and boost demand, especially for the poor and the lower middle class.
Finance Minister Sitharaman on Monday announced an additional loan of Rs 1.5 lakh crore for small and medium businesses. That includes announcing more funding for the health sector, loans to tourism agencies and guides, and visa fee waivers for foreign tourists. Responding to the economy development, Chidambaram said, “Some elementary truths: Credit guarantee is not credit. Credit is more debt, no banker will lend to a debt-ridden business.”
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In a series of tweets, the former finance minister wrote, debt-burdened or cash-strapped businesses don’t want more loans, they need non-debt capital. “More supply does not mean more demand (consumption). Conversely, more demand (consumption) will trigger more supply. Demand will not increase in an economy where jobs are lost and income or wages are low,” Chidambaram argued. Has been.
Chidambaram said on Modi government’s covid relief package – the answer to the crisis is to put money in the hands of the people