New Delhi, Feb 10: Former finance minister P Chidambaram on Monday tore into the Modi government's handling of the economy, saying it was close to collapse and was been attended by "very incompetent doctors."
Initiating the debate on the Union Budget for 2020-21, he said rising unemployment and falling consumption was making India poorer.
The economy, he said, is facing demand constraints and is investment starved. The economy is facing fall in consumption and rising unemployment.
"Fear and uncertainty prevails in the country," he added.
He said the chief economic advisor to the BJP government for four years, Arvind Subramanian has stated that the economy is in the ICU. But "I would say the patient has been kept out of ICU and incompetent doctors are looking at the patient," Chidambaram said.
"It is dangerous to have a patient out of ICU and being looked upon by incompetent doctors. What is the point standing around and chanting slogan 'Sab ka saath, sab ka vishwas'," he said, adding every competent doctor the Modi government could ever identify has left the country.
His said a list of such people included former RBI governor Raghurman Rajan, former CEA Arvind Subramanian, former RBI governor Urjit Patel and former NITI Aayog vice chairman Arvind Panagariya.
"Who are your doctors, I want to know," he said, adding the government considers Congress as untouchable and doesn't think of any good about the rest of the opposition and so doesn't consult them.
Chidambaram charged that instead of putting money in the hands of people, the Modi government "put money in hands of 200 corporates" by way of corporate tax.
He said Finance Minister Nirmala Sitharaman in her 160- minute budget speech did not talk of the economy and its management.
"You are living in echo chambers. You want to hear your own voice," he said.
Listing problems with the Modi government, Chidambaram said it refuses to admits in mistakes, lives in denial and has predispositions.
The demonetisation of old 1000 and 500 rupee notes, as well as the hurried implementation of the Goods and Services Tax (GST), are "monumental blunders" that ruined the economy, he said, adding the Modi regime is predisposed to protectionism, a 'strong' rupee and is against bilateral and multilateral agreements.
"It is living in denial," he said, adding the economic growth has fallen for hereto unseen six consecutive quarters.
He wondered on the narrative Finance Minister Nirmala Sitharaman was trying to give after reading out a 160-minute budget speech with few pages left unread.
Her budget neither made any reference to the Economic Survey nor picked up a single idea from it, he said.
Chidambaram, who is credited with presenting a 'dream budget' more than two decades back, said the GDP growth has declined for six consecutive quarters, agriculture is growing by just 2 per cent, while consumer price inflation has risen from 1.9 per cent in January 2019 to 7.4 per cent in a matter of 11 months.
Also, food inflation is at 12.2 per cent. Bank credit is growing 8 per cent with non-food credit rising by 7-8 per cent and credit to industry by just 2.7 per cent. Credit to agriculture has declined from 18.3 per cent to 5.3 per cent and that for MSMEs from 6.7 per cent to 1.6 per cent.
Overall industrial index showed just 0.6 per cent growth. "Every major industry is either near zero or in negative zone," he said, adding thermal power plants are operating at just 55 per cent of the capacity as factories have either closed or are on the verge of closure.
"That gives you a good picture of the state of economy. You don't require MRI," he said. "You are in management for six years. How long can you blame previous managers."
He charged the government with burying unfavourable reports such as the labour survey that put unemployment at 45 -year high of 6.1 per cent at end of 2017-18. Also, consumer expenditure has falling to 3.7 per cent between 2011-12 and 2017-18.
Drilling holes in Budget numbers, he said the 2019-20 budget projected a nominal GDP growth of 12 per cent but ended with just 8.5 per cent. Fiscal deficit was targeted to be shrunk to 3.3 per cent of the GDP but ended by at 3.8 per cent and in the next fiscal it is being targeted at 3.5 per cent.
Revenue deficit was targeted at 2.3 per cent in fiscal ending March 31, 2020 but ended up at 2.4 per cent and in the next it will rise to 2.8 per cent, he said, adding capital expenditure in the next fiscal will shrink to 0.7 per cent from 1.4 per cent in the current.
Net tax revenue in the current fiscal was targeted at Rs 16.49 lakh crore but only Rs 9 lakh crore was collected in first nine months till December 2019 and "you want us to believe this will rise to Rs 15 lakh crore by March 2020," he said.
Similarly, expenditure in 2019-20 was pegged at Rs 27.86 lakh crore but only Rs 11.78 lakh crore spent during April- December and by March this is projected to rise to Rs 27 lakh crore.
"You have no money to spend... and these are masked by numbers," he said. "Numbers are not easily acceptable or believable."
Chidambaram said the government is facing shortfall in all forms of taxes - Rs 1.56 lakh crore on corporate tax, Rs 10,000 crore on personal income tax, Rs 30,000 crore on customs, Rs 52,000 crore on excise and Rs 51,000 crore on GST.
This despite "the extraordinary powers" and "all kinds of power" given to lower level tax officials, he said.
He read of list of heads under which allocation has fallen - food subsidy, agriculture, PM-Kisan, rural roads, mid-day meal scheme, ICDS, skill development, Ayushman Bharat, rural development and MGNEGA.
Comments
Hahahah... What a joke!!!
What these RSS Terrorists contributed for India? They supported British. If you search in history Muslims taught them everything. Even they were not knowing how to bath, how to wear clothes, how to cook, how to build buildings. All the food recipe they learnt from Muslims. These aryans run away from Iran and now looting our India. All the Buildings and culture they are using were built by Muslims. What did they build??? Toilets????
AS PER WIKIPEDIA,
The Mughal Empire (Urdu: مغلیہ سلطنت, translit. Mughliyah Salṭanat)[7] or Mogul Empire,[8] self-designated as Gurkani (Persian: گورکانیان, Gūrkāniyān, meaning "son-in-law"),[9] was an empire in the Indian subcontinent, founded in 1526. It was established and ruled by a Muslim dynasty with Turco-Mongol Chagatai roots from Central Asia,[10][11][12] but with significant Indian Rajput and Persian ancestry through marriage alliances;[13][14] only the first two Mughal emperors were fully Central Asian, while successive emperors were of predominantly Rajput and Persian ancestry.[15] The dynasty was Indo-Persian in culture,[16] combining Persianateculture[8][17] with local Indian cultural influences[16] visible in its traits and customs.[18]
The Mughal Empire at its peak extended over nearly all of the Indian subcontinent[5] and large parts of Afghanistan. It was the second largest empire to have existed in the Indian subcontinent, spanning four million square kilometres at its zenith,[4] after only the Maurya Empire, which spanned five million square kilometres. The Mughal Empire began a period of proto-industrialization,[19]and Mughal India became the world's largest economic power, with 24.4% of world GDP,[20] and the world leader in manufacturing,[21] producing 25% of global industrial output up until the 18th century.[22] The Mughal Empire is considered "India's last golden age"[23] and one of the three Islamic Gunpowder Empires (along with the Ottoman Empire and Safavid Persia).[24]
The beginning of the empire is conventionally dated to the victory by its founder Babur over Ibrahim Lodi, the last ruler of the Delhi Sultanate, in the First Battle of Panipat (1526). The Mughal emperors had roots in the Turco-Mongol Timurid dynasty of Central Asia, claiming direct descent from both Genghis Khan (founder of the Mongol Empire, through his son Chagatai Khan) and Timur (Turco-Mongol conqueror who founded the Timurid Empire). During the reign of Humayun, the successor of Babur, the empire was briefly interrupted by the Sur Empire. The "classic period" of the Mughal Empire started in 1556 with the ascension of Akbar the Great to the throne. Under the rule of Akbar and his son Jahangir, the region enjoyed economic progress as well as religious harmony, and the monarchs were interested in local religious and cultural traditions. Akbar was a successful warrior who also forged alliances with several Hindu Rajput kingdoms. Some Rajput kingdoms continued to pose a significant threat to the Mughal dominance of northwestern India, but most of them were subdued by Akbar. All Mughal emperors were Muslims; Akbar, however, propounded a syncretic religion in the latter part of his life called Dīn-i Ilāhī, as recorded in historical books like Ain-i-Akbari and Dabistān-i Mazāhib.[25]
The Mughal Empire did not try to intervene in the local societies during most of its existence, but rather balanced and pacified them through new administrative practices[26][27] and diverse and inclusive ruling elites,[28] leading to more systematic, centralised, and uniform rule.[29] Traditional and newly coherent social groups in northern and western India, such as the Marathas, the Rajputs, the Pashtuns, the Hindu Jats and the Sikhs, gained military and governing ambitions during Mughal rule, which, through collaboration or adversity, gave them both recognition and military experience.[30][31][32][33]
The reign of Shah Jahan, the fifth emperor, between 1628 and 1658 was the golden age of Mughal architecture. He erected several large monuments, the best known of which is the Taj Mahal at Agra, as well as the Moti Masjid, Agra, the Red Fort, the Jama Masjid, Delhi, and the Lahore Fort. The Mughal Empire reached the zenith of its territorial expanse during the reign of Aurangzeb and also started its terminal decline in his reign due to Maratha military resurgence under Shivaji Bhosale. During his lifetime, victories in the south expanded the Mughal Empire to its greatest extent, ruling over more than 150 million subjects, nearly one quarter of the world's population at the time, with a GDP of over $90 billion.[34][35]
By the mid-18th century, the Marathas had routed Mughal armies and won over several Mughal provinces from the Punjab to Bengal.[36] Internal dissatisfaction arose due to the weakness of the empire's administrative and economic systems, leading to its break-up and declarations of independence of its former provinces by the Nawab of Bengal, the Nawab of Awadh, the Nizam of Hyderabad and other small states. In 1739, the Mughals were crushingly defeated in the Battle of Karnal by the forces of Nader Shah, the founder of the Afsharid dynasty in Persia, and Delhi was sacked and looted, drastically accelerating their decline. During the following century Mughal power had become severely limited, and the last emperor, Bahadur Shah II, had authority over only the city of Shahjahanabad. He issued a firman supporting the Indian Rebellion of 1857 and following the defeat was therefore tried by the British East India Company for treason, imprisoned and exiled to Rangoon.[37] The last remnants of the empire were formally taken over by the British, and the Government of India Act 1858 let the British Crown formally assume direct control of India in the form of the new British Raj.
Aryan cowboys who invaded India, enslved the original inhabitants destroying their culture, imposed Vedic divisive foreign inhuman cast system. India is still suffering from their terror mindset. They are the people who supported the British and responsible for death of millions of Indian freedom fighters. These traitors who licked the British boots, now lecuring us about patriotism. When Mughals came to this land, there was no India, they built India and contributed richly to its history. If these anti-human gang cant digest the truth, let them NOT use any of the Mughal or Muslims contribution and jump into Sarayu or Ganga enmasse.
If Owais is committing intolerance, Oh Blind, deaf, dumb BJP chelas, puffets, what the hell is happening specially in UP, is it tolerance? Killing in the name of gow rakshaks, killing small children, is it tolerance?
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