The panel made the following recommendations:
- Increased Capital Expenditure on its own will not fix our economic issues, the Indian economy is faced with major challenges of unemployment, rural financial distress and inadequate human capital formation.
- Capital Expenditure in areas such as infrastructure provides delayed returns because of long gestation periods.
- Although there has been a rise in agricultural output, but the income of farmers has fallen. There is a need for increased institutional support for income supplementation and reducing dependence on monoculture practices.
- There has to be increased monetary allocation to the social sector to generate inclusive growth.
- There has to be revenue expenditure, specifically in schemes such as MGNREGA so that wages are paid on time to workers and the issue of rural financial distress can be solved.
- There has to be focus on ensuring uninterrupted delivery of key public services such as education and health. There has to be sufficient monetary allocation to support this.
- As the finances of the State Governments are getting squeezed, it has to be ensured that States get their due of taxes as per the recommendations of the 15th Finance Commission.
- The State Governments should have more autonomy in making laws about their socioeconomic matters.
- The MSME sector does not have enough access to institutional credit, there have to be dedicated interventions to make credit accessible to them to create jobs.
- The MSMEs that have received financial support under the Emergency Credit Line Guarantee Scheme (ECLGS) are mainly large units, smaller units have not been able to benefit much from the scheme, there is a need for course correction here.
- There has to be a linkage of the PLI scheme to job induced growth, as of now most of the sectors getting subsidies under the PLI scheme are very capital intensive.
- There has to be increased expenditure on flagship schemes that deliver important public services such as education, nutrition, health (non-COVID) and water supply.
- There has to be a wellrounded manner in which government expenditure is structured so that economic recovery does not remain restricted only to the formal sector.