P Chidambaram
P Chidambaram
(PTI Photo/Kamal Singh)

Former Finance Minister P Chidambaram has welcomed the Centre's decision to borrow additional amount of Rs 4.2 lakh crore taking the projected fiscal deficit to 5.38 per cent.

In a statement, Chidambaram said that echoing several eminent economists, he and the Congress party had appealed to the central government to shed its reservations and borrow more in 2020-21.

"In our view, the budgeted fiscal deficit of 3.5 per cent should not be a constraint in these extraordinary times. After resisting our appeals, especially through statements by the CEA, the government has finally decided to borrow an additional amount of Rs 4.2 lakh crore taking the projected fiscal deficit to 5.38 per cent. We welcome the decision," said Chidambaram.

However, he said it is not enough to borrow more unless the amount is used to provide relief to the poor and to re-start the economy. "We look forward to the revised Expenditure Budget for 2020-21," he added.

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