Give cash into people's hands to keep the economy afloat, Nobel Prize-winning economist advises

New Delhi, May 5, 2020

Former Congress president Rahul Gandhi today spoke to Nobel laureate in economics Abhijeet Banerjee about the damage done to the economy by the nationwide lockdown imposed by Corona.

To revive the country's economy, Banerjee said, "People need to get cash and forgive their debts. The Indian government has to announce a big package like the US.

In response to a question from Rahul Gandhi, Banerjee said, "It is better to give money to people like the justice scheme. So it is not wrong to give money to the economically weaker sections. In a way, this will be an incentive."

Before the Lok Sabha elections, Rahul Gandhi had promised to give Rs 72,000 a year to five crore poor families under the Justice Scheme if a Congress government is formed.

"It will be a challenge for Beko and it will be difficult to save jobs," Banerjee said. "It has to be true. We have not yet announced a big package like the US. They have no money and no one is buying. In these circumstances, it is not appropriate to delay the delivery of financial help to the people.

He said there was no point in pursuing a lockdown. The government should make arrangements to provide free rations for three months at present. The government should consider giving money to those who do not have a bank account.