" Of course I am not in a position to provide the level of fiscal stimulus which I was able in 2008-09.....," said our most revered Finance Minister. That so called " stimulus " was a blatant bribe to civil servants and farmers to win the general elections in 2009. It also injected a huge amount of liquidity into the system and acted as a stimulus but it was unproductive and left the government bankrupt by not increasing tax collections. Hence the inability to stimulate the economy at present. The government needs another Rs 500 billion to keep going. Borrowing more from the market will only increase the deficit and drive up interest rates by sucking funds out of public sector banks who are required to buy bonds at RBI auctions. One way would be to sell shares in government owned companies or PSUs but the share market is volatile and trying to sell a large block of shares will only depress prices. Some of these PSUs are apparently sitting on piles of cash and the government desperately wants to get its hands on the money. Previously PSUs have been forced to pay out big dividends most of which went to the biggest shareholder i.e. the government. Trouble is dividend has to be paid to minority shareholders as well which the government is loathe to do. How to get your grubby hands on public money without sharing with the public? The idea is to force PSUs to buy shares from each other. So company A buys shares from company B and vice versa. Since both companies are owned by the government it still owns the same number of shares but both companies have no money left. Lies and flimflams are not best for the economy. How long before collapse?