By using the finances in the windfall for strengthening the government's balance sheet rather than for government consumption.
The Chief Economic Advisor suggests that:
"The best use of windfall would be to create a public sector asset reconstruction company so that it can addresses the twin balance sheet problem and facilitate credit which will eventually lead to investment revival in the economy"
First, let's understand what the terms actually mean,
Fiscal windfall: These are the extra earnings of the Government through some unusual means like the demonetization (this also included the deposits made by black money holders in the PMGKY account), fall in the oil prices globally etc. These add to the revenues of the government.
Twin balance sheet problem :
In simple terms :
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Banks gave loans to corporates.
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Corporates invested in commodities and infrastructure.
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Both the sectors faced slump years and thus corporates couldn't get enough profit.
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Corporates unable to pay back the loans.
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The assets of banks, viz. Loans, turn into Nonperforming assets or NPA.
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Thus we have two problems here:
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Banks are in terrible condition with mounting NPAs.
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Corporates are debt laden and thus unable to invest, thus slowing down the growth.