Days after RBI Governor Raghuram Rajan warned bank defaulters against flaunting their wealth, Chief Economic Advisor Arvind Subramanian and NITI Aayog member Bibek Debroy said that "flaunting" of riches does not matter.
The two economists were speaking to NDTV's Barkha Dutt in an exclusive show that also featured French economist Thomas Piketty, author of the book 'Capital'. (Watch the full show here)
In Davos, the RBI Governor had said that rich businesses owing large sums to banks should behave and not flaunt "massive birthday bashes" while still in serious debt.
Mr Debroy however countered Dr Rajan's statement, saying assets and liabilities of an enterprise can be delinked from those of individuals, which is entirely a limited liability concept.
"I think wealth creation is good for society and wealth creation is good for everyone. You make tonnes of money and you go and flaunt it. It's none of my business," he told NDTV.
When the question was put to Mr Subramanian, the CEA said: "I have no views on flaunting. We address owing the money problem, not flaunting... Flaunting, I agree with Bibek."
To deal with the problem of debt, he said the country needs legislations like the bankruptcy law which has been introduced in Parliament and other mechanisms for "fairly apportioning the cost of decisions made in past" among all stakeholders.
"This is a private matter," Mr Subramanian said when asked if he was saying how people spend their money is their own business even if they are in debt.
(With agency inputs)
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