ECONOMY/ GOVERNANCE

Topic:

Demand for New Fiscal Stimulus

Context: Confederation of Indian Industry (CII) has urged the government should spend an additional Rs 3 lakh crore as fresh fiscal stimulus to boost demand in the economy. 

It has also suggested where this money should be spent:

Why the repeated calls for fresh stimulus?

Where will the additional Rs 3 lakh crore come from?

Concerns with printing money

Are there any alternatives to printing more money?

There are several alternatives.

  1. Compressing “pay ratios” in the corporate world
  1. Wealth tax
  1. Inheritance Tax

Connecting the dots:

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