Rahul Gandhi's hands full of cha…

  New Delhi: Anticipated…

Land most sought asset of Salem …

  Chennai: Tamil Nadu Ch…

Tripura CM urges Bangladesh to o…

  Chottakhola (Tripura):…

Policeman trains gun at Kamal Na…

  Chhindwara (Madhya Pra…

SC imposes Rs 1 lakh cost on NGO…

  New Delhi: The Supreme…

Modi to visit Ockhi-hit fishing …

  Thiruvananthapuram: Af…

Rahul's impending takeover spark…

  New Delhi: Scores of R…

President offers prayers at Sang…

  Lucknow: On the second…

Recognise Jerusalem as Palestine…

  Hyderabad: MIM chief A…

Three years jail for Jharkhand e…

  New Delhi: A court her…

«
»
TwitterFacebookPinterestGoogle+

Economy booster package should look at raising capital expenditure: Rangarajan

Facebooktwittergoogle_plusredditpinterestlinkedinmail

New Delhi: Former Reserve Bank of India Governor C. Rangarajan on Friday said the package the government is looking at to revive the economy should be partly to raise capital expenditure and look at problems preventing private investments from rising.

“The package in my opinion should be partly to raise capital expenditure of the government, but suited in a way in which it will stimulate private investments,” he told reporters on the sidelines of the 10th International Gold Summit by Assocham.

He said the fall in growth rate was also accompanied by a fall in investment rate.

“More critically, it is the private investment rate that has fallen. In fact public expenditure on capital has shown some slight rise. Therefore, the most important thing is to address the problems that may be preventing private investment from rising,” Rangarajan said.

He suggested that two things can be done. “There are a number of stalled projects. The low hanging fruit is to ensure that these stalled projects are activated. Secondly, the banking system needs to be recapitalised so that it can provide additional credit for investment as well.”

Leave a Reply

Your email address will not be published. Required fields are marked *

CAPTCHA Image

*