Arvind Subramanian
Former Chief Economic Advisor,
& Devesh Kapur
Professor, Johns Hopkins University
STIMULUS REQUIRED 10
`
LAKH CRORE
HOW: Print currency worth ` 2 lakh crore
IMPACT: Will lead to inflation
HOW: Reduce expenditure worth ` 1.5 lakh crore
IMPACT: Will mean no hike in salaries, wages, pension
HOW: Higher wealth tax or solidarity tax of ` 1 lakh crore
IMPACT: Will impact earnings of rich and upper middle class
HOW: Bond financing of ` 4 lakh crore
IMPACT: Will lead to double-digit deficit
HOW: Foreign multilateral borrowings of ` 1.5 lakh crore
IMPACT: Will lead to deficit