A day after Finance Minister Nirmala Sitharaman announced a package to support the pandemic-hit economy, senior Congress leader P Chidambaram on Tuesday said the answer to this "crisis" is to spur demand by putting money in the hands of the people, especially the poor and the lower middle classes.
Sitharaman on Monday announced Rs 1.5 lakh crore of additional credit for small and medium businesses, more funds for the healthcare sector, loans to tourism agencies and guides, and waiver of visa fee for foreign tourists as part of a package to support the pandemic-hit economy.
Reacting to the development, Chidambaram said, "Some elementary truths: Credit guarantee is not credit. Credit is more debt. No banker will lend to a debt-ridden business."
Debt-burdened or cash-starved businesses do not want more credit, they need non-credit capital, the former finance minister said in a series of tweets.