Hyderabad: Former Reserve Bank of India governor Raghuram Rajan on Sunday suggested to Chief Minister A. Revanth Reddy that the government explore ways of increasing revenues without burdening the people to pay for the welfare schemes.
In an informal meeting with the Chief Minister and Deputy Chief Minister Mallu Bhatti Vikramarka, who also holds the finance portfolio, at the CM’s residence, the eminent economist observed that there would always be scope for arresting wasteful expenditure and improving tax revenues by keeping pilferage in check.
“As you cannot go back on the poll promises, the only way is to raise revenues to meet the expenditure of the welfare and development initiatives,” he is said to have pointed out.
Dr Rajan, sources said, offered to study and make suggestions for the successful implementation of the state government’s welfare initiatives and the Six Guarantees. Maintaining that he was not aware of the actual financial position of the state government, Dr Rajan said he would go through the details and make suggestions if required.
Dr Rajan is presently a full-time professor at a US university. He is touring several cities to promote his latest book.
The Chief Minister earlier extended a warm welcome to Dr Rajan and presented a shawl and memento. IT and industries minister D. Sridhar Babu, finance special chief secretary K. Ramakrishna Rao and CM’s secretary V. Seshadri were present.
