India needs stimulus package like US and direct cash transfer: Nobel winner Abhijit Banerjee tells Rahul Gandhi
Nobel laureate Abhijit Banerjee, while speaking with Congress leader Rahul Gandhi on Tuesday, said that direct cash transfer is that the only thanks to benefit not only the poor, but also those that are severely suffering from the long spell of lockdown.
After former RBI governor Raguram Rajan, Rahul Gandhi on Tuesday engaged during a conversation with economist and Nobelist Abhijit Banerjee to debate the economic measures India can fancy help those suffering within the lockdown.
In a video conference chat, Abhijit Banerjee said, “Direct cash transfer is that the answer , not just for the poor, but also those hit by the long spell of lockdown.”
Talking about transferring benefits to the poor, Abhijit Banerjee said the govt needs a mechanism with which the Centre will transfer the cash to the state governments to succeed in the poor.
“The real challenge is for people that aren't covered by Social Security schemes. No such security cover is there for an outsized population just like the migrant labourers,” Abhijit Banerjee said.
He added, “Aadhaar portability could have worked wonders for migrants like by giving access to food grains through the general public Distribution System (PDS)”.
The economist also advised that the govt can bring a short lived ration system for those in need and suspend all other ration cards temporarily.
In the conversation, Rahul Gandhi observed that tiny business face a severe cash crunch.
Abhijit Banerjee replied saying, “We need an outsized stimulus package just like the US. India has announced a package that's close to 1% of its GDP and US has announced a package of 10% of its GDP.”
“People aren't buying in these times and spending is that the easiest method to revive the economy. We cannot shut the whole retail sector because they're situated within the coronavirus red zone,” observed Banerjee.
Speaking on the migrant labourers crisis, Abhijit Banerjee said, “The migrant problem cannot alone be handled by the government and therefore the Centre must manage this.”
To this, Rahul Gandhi added that the states should tend freedom to manage the lockdown but this government at the Centre thinks otherwise.