Government must borrow to cover deficit, not impose new taxes: Chidambaram
NEW DELHI: Former Minister of Finance and Senior Leader P Chidambaram On Wednesday, he said that governments must borrow to meet their needs and not impose new or higher taxes amid the current Covid-19 crisis.
Chidambaram wrote: Governments must borrow to cover their deficits, not impose higher taxes when economic activity has stopped.
In a series of tweets, the former finance minister claimed that instead of cash transfers to the people, governments are making REVERSE TRANSFER of money.
He said in another tweet that new or higher taxes are justified only when the economy is booming.
New or higher taxes are justified only when the economy is booming. Tax burdens on the middle class and the poor are actually taxing distress. - P. Chidambaram (@PChidambaram_IN) 1588739998000