Rs.20,00,000 crore economic package is a bold and welcome decision and this may lead to vast economic development of India and the GDP is sure to register substantial increase.
I think that the present difficult situation may be used to create permanent assets by spending Rs.15,00,000(fifteen lakhs) crore by undertaking large scale infrastructural projects like;
- Deepening lakes and dredging dams and rivers wherever required, to hold additional water.
- Linking lakes with rivers and removing all obstacles in rainwater reaching the lakes
- linking of intra-state rivers(linking of interstate rivers can also be explored with the consent of states)
- widening single lane roads into two lane roads, double lane roads into 4 lane roads and 4 lane roads into 6 lane roads
- laying railway lines and doubling or tripling railway lines
- establishing solar and wind power generating units.(India may need more electricity.)
The above mentioned works can be undertaken under Mahatma Gandhi Rural Employment Guarantee Scheme by suitably modifying the scheme.
Out of Rs.15 lakh crores, an amount of Rs.10,00,000 crores can be allotted for payment of wages for unskilled workers. Regular full time employment can be provided from this fund at the wages of Rs.5000/-(five thousand) per head per month. This amount can meet the wages of 16 crore unskilled workers for one year. ( 10,00,000 crore/5000 X12 ) This accounts for roughly 25% of all able bodied persons in the country(excluding children, senior citizens, handicapped and sick people. This may eradicate unemployment among unskilled workers in the entire country.
Balance amount of Rs.5,00,000 crores can be used for purchase/hiring of equipment, temporary residences ,transport etc. and for payment of salaries for skilled workers, Engineers, Supervisors etc.
The irrigation work may lead to increase in agricultural produce. Industries like textiles, building materials, transport equipment etc. may also see increased demand for their products.
This Rs. 15 lakh crores may lead to production of assets/products valued at least twice the expenditure viz Rs.30 lakh crore. This may be about 10-15% of current GDP. If current production is kept at the same level, GDP may go up by 10-15%.
The money could be borrowed from Reserve Bank of India and the debt could later on be monetized.