“Right now it will be a government-owned DFI. It will be through legislation, which will also enable the setting up of private DFIs. There will be a provision that if in the later stages, the DFI wants to diversify its equity, it will be able to do that,
Interview | New ‘bad bank’ will take in at least Rs 2 lakh crore of NPAs: Chief Economic Advisor Krishnamurthy Subramanian
In an interview with Moneycontrol, Krishnamurthy Subramanian also said the measures taken by the Modi government to deal with the latest economic crisis are less inflationary than interventions by previous governments, and that some 100 crore people may be vaccinated for free. February 04, 2021 / 06:37 PM IST
The measures taken by the Modi government to deal with the latest economic crisis are less inflationary than interventions by previous governments, Chief Economic Advisor Krishnamurthy Subramanian said, in an exclusive interview with
Moneycontrol. The chief economic advisor, whose latest economic survey set the intellectual argument for the Centre to go for a fiscal expansion, also said states’ allocation for the COVID-19 vaccination programme could match that of the Centre.
The Centre s gross borrowings will swell to Rs 12.05 lakh crore next year, about 5.8 per cent lower than the revised estimate of Rs 12.8 lakh crore this fiscal
File photo of Union Finance Minister Nirmala Sitharaman at Parliament. | PTI
Finance Minister Nirmala Sitharaman on Monday will present the Union Budget for 2021-’22. While speaking at a virtual event of the Confederation of Indian Industry last month, Sitharaman had asked for inputs to formulate a Budget “like never before”. This was significant as it came in the year of the coronavirus pandemic and an unprecedented lockdown, as well as when the economy plunged to brand-new lows.
The pandemic added to existing woes as India’s economy was already slowing down before it struck. The year has left Sitharaman with the task of having to increase government spending in order to boost the economy, but with little scope for higher revenue collection or borrowing from the market.
It has been billed as a Budget like never before, triggering expectations that the government will open the purse strings to nurse the Covid-hit economy back onto a robust growth trajectory with a massive fiscal push.