New Delhi: Finance Minister Arun JaitleyĀ on Sunday said his ministry is debating the two innovativeĀ
suggestions made by the latest Economic Survey - UniversalĀ Basic Income (UBI) and creation of a 'bad bank' - to deal withĀ the unacceptable levels of bad loans.Ā He, however, said the idea of UBI does not seem to be aĀ feasible policy option at this point of time given theĀ "political limitations".Ā While inaugurating a one-week teachers' workshop at theĀ Indian Institute of Technology (IIT), Delhi, the finance minister also emphasised policymakers to continuously upgradeĀ their knowledge on different subjects.
"I think it's equally meant for policy makers becauseĀ they should also be acquainted with the facts for informedĀ policy making", he noted.
On innovative ideas of the Survey, he said it remains aĀ challenge on how to allocate subsidies in a targeted manner.Ā The Survey, prepared by Chief Economic Adviser ArvindĀ Subramanian, also strongly pushed for a bad bank, in which allĀ non-performing assets (NPAs) of the banks are vested so that the restĀ of the banking system could carry on with its own activities,Ā he said.
"I have been having debates with him on both his currentĀ suggestions. I'm fully supportive of his idea (UBI) butĀ realising limitations of Indian politics, I have alwaysĀ expressed to him the fear that once he moots ideas like theĀ UBI, we will be landing in a situation where people will standĀ up in Parliament and demand continuation of the presentĀ subsidies and over and above that let's have the UBI,Ā something that the Budget will not be able to afford," heĀ said.
The minister said that the Economic Survey, whichĀ precedes Budget by a day, is not a propaganda material butĀ highlights the stark reality of the economic situation.Ā
"The document had traditional format but in the past twoĀ years Dr Subramanian and his team have deviated from theĀ traditional format. It's drafted differently. In addition toĀ analysing present state of affairs, it also always contains aĀ chapter or two which are provocative," he said.
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