Use asset sale to trim debt. for best stimulus: CEA

New Delhi: Chief economic adviser (CEA) V Anantha Nageswaran on Monday indicated his preference for using asset monetisation receipts to lower government debt, saying it will be the best stimulus for the economy.

The comments at an event organised by think tank NCAER and the International Monetary Fund (IMF) suggested a shift in the Centre’s stance as the original intent of the asset monetisation programme was to plough back the receipts into the companies or agencies to fund fresh capital expenditure. A change in approach may result in money from agencies, such as, NHAI flowing into the Consolidated Fund of India and being used to bridge the fiscal deficit, much like disinvestment proceeds.