Former Finance Minister P Chidambaram has claimed that the 'Aatmanirbhar Bharat' package announced by the Centre is worth only Rs 1,86,650 crores and not Rs 20 lakh crore as stated by Prime Minister Narendra Modi. The Congress MP has severely criticised the second economic stimulus announced and has opined that it is 'hopelessly inadequate.'
The fiscal stimulus package is not for Rs 20 lakh crore. It is only for Rs 1,86,650 crore.— P. Chidambaram (@PChidambaram_IN) May 18, 2020
Remember that number and we will know the truth in course of time
Addressing a press briefing on Monday, the former Union Minister stated that the stimulus package has left several sections like the poor, migrants, farmers, labourers, workers, small shopkeepers and middle class high and dry. He also expressed the Congress Party's disappointment and requested the government to reconsider the stimulus package and announce a revised one. Chidambaram has suggested a revised comprehensive fiscal stimulus package of not less than Rs 10 lakh crore of real additional expenditure equivalent to 10 per cent of GDP.
Furthermore, Chidambaram accused the government of purposely bypassing Parliament and a discussion on the package. "I think the government is deliberately sidelining Parliament. A meeting of the Parliamentary Committee should at least be held to discuss the fiscal stimulus package," he said. The former Union Home Minister has also claimed that the second stimulus package is only 0.91 per cent of the GDP instead of the 20% announced by the Modi-led government at the Centre.
Finance Minister Nirmala Sitharaman had announced the fifth and final tranche of Stimulus 2.0 on Sunday. The financial package of Rs 20 lakh crores as announced by PM Modi in his address to the nation last Tuesday is meant to provide a boost to the economy which has been impacted due to the Coronavirus crisis and consequent lockdown.
Major reforms and measures announced under the second stimulus include Rs. 3 lakh crore collateral-free automatic loans for business, Global tenders to be disallowed up to Rs. 200 crore, One nation one ration card in three months, Rs 5000 Credit facility for street vendors, and Corporatisation of Ordnance Factory Board. Read the full breakup of Stimulus 2.0 here.