Govt should spend on profitable firms to boost economy: Raghuram Rajan

Former RBI Governor Raghuram Rajan on Wednesday said the government should focus on spending on profitable firms, which have been incurring costs but have not earned revenues in the last four months.
 

Speaking at NCAER's India Policy Forum 2020, Rajan said in the pandemic, unlike normal recession, there is enormous amount of destruction, which has happened to households and also to firms, and that's where relief and repair has to come in along with stimulus.
 

When asked by Expenditure Secretary T V Somanathan on what Rajan thinks would be safe level for expenses on repair and what is the appropriate