Updated February 4th, 2020 at 06:10 IST
P Chidambaram questions Centre's move to stimulate growth & revive economy
Chidambaram questioned the government's moves and said that the Budget does not have measures to revive the economy.
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Senior Congress leader and former Finance Minister P Chidambaram pointed out the deficiencies in Nirmala Sitharaman's Union Budget. At an event in Chennai, Chidambaram said that the government has not taken steps to revive the failing economy.
PC questions moves for growth
The take way from the Budget speech are the following:
— P. Chidambaram (@PChidambaram_IN)
1. The government has given up on reviving the economy or accelerating the growth rate or promoting private investment or increasing efficiency or creating jobs or winning a greater share of world trade.
Chidambaram said, "What has this budget done to stimulate demand? The most logical way is to give people more money. The people who need more money are not those who already have money. It is mass consumption that will stimulate demand and not elitist consumption."
Highlighting the poor state of the economy, the former finance minister said, "What is the state of the economy? For six quarters for which figures are available, growth has declined. After every quarter, the government said it will turn around in the next quarter. It is an alarming trend. CPI inflation has crossed 7%, food inflation crossed 10%. The economy is in distress. It requires a very radical approach."
He added that the government has not even acknowledged that there is a problem with the economy and thus it is not taking any steps to revive the economy. "To begin with, the doctor has to acknowledge the patient is ill. Unless the doctor faces the truth about the state of the patient how can the doctor prescribe a treatment," he further added.
READ: Cong May Oppose LIC Listing If Govt Fails To Convince: Chidambaram
Sitharaman presented the first full budget of Narendra Modi's second government on Saturday in a speech that went on for over two hours and 41 minutes.
There is nothing in the Budget that leads us to believe that growth will revive in 2020-21. The claim of 6 to 6.5. per cent growth next year is astonishing and even irresponsible.
— P. Chidambaram (@PChidambaram_IN)
READ: Chidambaram Unmoved By Budget 2020's J&K Allocation; 'money No Substitute For Freedom'
Chidambaram had earlier stated that the Budget speech was 'laundry list of old programmes'. He had said, "It is a laundry list of old programmes; even most loyal BJP supporters cannot latch on to any idea in the Budget speech. The budget is also not speaking on employment. This govt has given up on fiscal consolidation.
In 2019-20, the Finance Minister failed to meet any of the key Budget Estimate targets — nominal GDP growth, fiscal deficit, net tax revenue collection, disinvestment revenue or total expenditure. ," he said at a post-budget Congress press conference.
READ: Budget: MGNREGA Funds Down By 13%, Marginal Dip In Other Rural Development Schemes
(Photo: PTI)
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Published February 4th, 2020 at 06:04 IST