NEW DELHI : Former Reserve Bank of India (RBI) governor Raghuram Rajan has urged the Narendra Modi administration to prioritise spending on the poor and cautioned about a potential rise in bad loans due to the Coronavirus pandemic, calling it the greatest challenge the nation is facing in recent times.
Rajan, who is currently professor of finance at Chicago Booth, said in a blog post that prioritising spending on the needy could help them see them through the crisis months ahead.
Not ensuring this could have consequences like the mass movement of migrant labour, he said. “Spending on the needy at this time is a high priority use of resources, the right thing to do as a humane nation, as well as a contributor to the fight against the