[ad_1]
Arvind Subramanian on Wednesday said that oil should be used for public investment, an opinion which he did not find favor with fiscal puritans.
"My own judgment is that we should have used the oil for the purpose of fiscal consolidation," Subramanian said at an event organized by the National Council of Applied Economic Research (NCAER) .
He said that it is used for fiscal deficit reduction, enhancing public investment and executing the commission.
The Center's fiscal deficit widened to 3.5 percent of the gross domestic product in 2017-18 against the budget estimates of 3.2 per cent. However, this has been attributed to the fact that it has been badigned to one of the following 2018-19. The deficit is projected to come down to 3.3 percent of GDP in the current financial year.
The CEA, however, said the government withstood the government withstood pressure. (19659002) In conversation with Karthik Muralidharan, Tata Chancellor 's Endowed Chair at the University of California, the CEA said public sector banks are disabled by their ability to recruit
He narrated an incident of forming Reserve Bank of India (RBI) governor Raghuram Rajan inviting him to read at the National Institute of Bank Management (NIBM). At a lunch on the occasion, Rajan told him that it is an irony that RBI invests in NIBM public sector banks
The CEA said the political case for privatization of public sector banks has become more difficult after the happenings in ICICI Bank.
He said the RBI has done a good job of bringing 11 public sector lenders under the prompt corrective action and felt that recapitalization of banks has to be
Subramanian said he was in favor of the bad bank, an idea junked by the government now. "Aimed at being insolvency and bankruptcy code (IBC) is a way forward because the executive would have been in the front line in the bad bank. Now, decisions are taken by the judiciary and quasi-judicial bodies. We need a judicial way to overcome stigmatized capitalism. "
[ad_2]
Source link
