News on Budget 2021: What Raghuram Rajan wants govt to prioritise)
Top economist and former Reserve Bank of India (RBI) governor Raghuram Rajan wants the government to prioritise spending in the upcoming Union Budget 2021. Rajan’s advise comes just a little over two weeks before Finance Minister Nirmala Sitharaman announces the country’s budget on February 1, 2021. How the government chooses its priorities in the upcoming budget will be crucial. The renowned economist told the publication that the government has to prioritise spending and provide relief to poorer households and small businesses in the country. Rajan has also advised the government to boost spending on infrastructure, for which the Centre needs to release funds to state governments without delay. “This is a wrong time to stop the states”, He said the government “should be selling shares from every rooftop” to make up for the higher borrowing and tighter revenue. He also highlighted that now is a good opportunity to offload shares as markets are on a winning run. The proceeds from these sales can then be used to fund new infrastructure projects, necessary to boost employment.