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Chidambaram suggests to Govt to borrow money or print notes as GDP shrinks in darkest year

Former Finance Minister P Chidambaram on Tuesday said that the financial year 2020-21 has been the darkest year of the economy in four decades and that the government must print money if necessary.

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Former Finance Minister P Chidambaram on Tuesday said that the financial year 2020-21 has been the darkest year of the economy in four decades and that the government must print money if necessary. 

Addressing a press conference on GDP, Chidambaram said, the GDP in 2020-21 is lower than the GDP in 2018-19. 2020-21 has been the darkest year of the economy in four decades. The performance in the four quarters of 2020-21 tells the story. 

The National Statistical Office (NSO) on Monday released the GDP numbers that showed the economy had contracted by 7.3 percent over FY20/21- its worst performance in more than 40 years.

Commenting on the figures, Chidambaram said, the first two quarters witnessed a recession (-24.4 and -7.4 per cent)… performance in the third and fourth quarters did not herald a recovery. The positive Q3 and Q4 rates – 0.5 and 1.6 percent – should be seen in the context of a very low base of 3.3 and 3.0 per cent in the corresponding quarters of the previous year.

He urged the Union government to borrow money or print banknotes and to spend it aggressively without worrying about the fiscal deficit. He said, This is not the time to worry about the fiscal deficit. So what if the deficit widens to 6.5%? We can’t lose another year like we lost the last year.

But the way the government is reacting, we are going to lose another year. My advice to the government is to act boldly and spend. Borrow or print money and spend, he added

Slamming the Modi-led government, he said, the current state of the economy is no doubt largely due to the impact of the pandemic, but it has been compounded by the ineptitude and incompetent economic management of the BJP-led NDA government.

Chidambaram claimed that the ruling government misled the people. When the first wave of the pandemic appeared to subside last year, the finance minister Nirmala Sitharaman and her chief economic adviser began to sell the story of a recovery. They saw “green shoots” when no one else did. They predicted a V-shaped recovery. It was a false story, he said.

Further criticising Sitharaman, the Congress MP said, Unless you take steps now, how will you tackle the third or fourth wave? The finance minister said budget proposals will kick in. The budget was placed on February 1. Today is June 1. How long it will take for the budget proposals to kick in?

What is most worrying is that the per capita GDP has fallen below ₹1 lakh, to ₹99,694. In percentage terms, it is a decline of (-) 8.2 per cent over the previous year. It is lower than the level achieved in 2018-19 (and maybe even 2017-18). The deeply worrying conclusion is that most Indians are poorer than they were two years ago, the former finance minister said.

Read Also: Month after Trinamool big win, rebels who joined BJP, seek re-entry

As the overall economic situation has pushed millions of people below the poverty line, the financial crisis of the states arising out of non-payment of their share of GST revenues will impact the vaccination programme, he apprehended. 

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Sambhal violence: Samajwadi Party MP among 400 charged in Uttar Pradesh, Opposition blames BJP

The protesters also set some vehicles on fire and threw stones at the police, who used tear gas and batons to disperse the mob.

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Sambhal violence: Samajwadi Party MP among 400 charged in Uttar Pradesh, Opposition blames BJP

Samajwadi Party MP Ziaur Rahman Barq, and his party colleague Iqbal Mahmood’s son Nawab Suhail Iqbal are among the 400 people who have been charged in the violence over the survey of a mosque in Uttar Pradesh’s Sambhal. Nearly 25 people were arrested for the violence which killed 4 people.

During a court-ordered survey of the Mughal-era Shahi Jama Masjid on Sunday, Sambhal witnessed deadly clashes between the locals and the police. The Shahi Jama Masjid is at the centre of a contentious legal battle over claims that it was built on the site of a Hindu temple.

Reports said that the protesters also set some vehicles on fire and threw stones at the police, who used tear gas and batons to disperse the mob. Considering the situation, the district administration has imposed prohibitory orders and barred the entry of outsiders till November 30.

Around 20 police personnel were also injured and a constable, who suffered an injury to the head, is said to be critical. Addressing a press conference, Superintendent of Police Krishan Kumar said that due to Ziaur Barq’s statement earlier, the situation became worse. He added they were identifying the protestors using drone footage and that the accused would be charged under the stringent National Security Act (NSA).

Reacting to the incident, Leader of Opposition in Lok Sabha and Senior Congress leader Rahul Gandhi attacked the BJP today, saying the party was responsible for vitiating the situation.

The Congress leader said that the biased and hasty attitude of the state government on the recent dispute in Sambhal, Uttar Pradesh is extremely unfortunate. He expressed deepest condolences to those who lost their loved ones in the violence and firing. He claimed that the administration’s insensitive action without listening to all parties further vitiated the situation and resulted in the death of many people, for which the BJP government is directly responsible.

Rahul Gandhi further said that the BJP’s use of power to create rift and discrimination between Hindu-Muslim communities is neither in the interest of the state nor the country. He also requested the Supreme Court to intervene in this matter as soon as possible and provide justice.

Earlier on Sunday, Samajwadi Party chief Akhilesh Yadav accused the BJP, along with the state government and administration of orchestrating the violence. 

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Akhilesh Yadav says BJP orchestrated Sambhal violence to cover up byelection malpractice

He said that impartial investigations would reveal that many voters were unable to cast their ballots and that someone else had fraudulently voted in their place.

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Samajwadi Party chief Akhilesh Yadav on Sunday accused the BJP government of orchestrating the violence in Uttar Pradesh’s Sambhal district during a mosque survey, claiming it was a ploy to distract from electoral malpractice.

Yadav, the former chief minister of Uttar Pradesh, also alleged incidents of electronic booth capturing during the recently concluded bypolls for nine Assembly seats in the state, suggesting that a forensic examination of the electronic voting machines (EVMs) by the Election Commission could provide clarity on the situation.

Earlier in the day, the Uttar Pradesh Police used tear gas to disperse the crowd after it got violent and started stone pelting as tension escalated during a second survey of the Mughal-era mosque, claimed to be originally the site of an ancient Hindu temple. At least ten people were detained following the violent clash.

The local administration said that a second survey, led by an “Advocate Commissioner” as part of a court-mandated examination of the disputed area, commenced around 7 AM, attracting a gathering crowd.

Yadav made the statement a day after the results of the UP bypolls, where the Samajwadi Party secured only two seats, while the BJP and its ally, the RLD, won seven, including the Kundarki seat, which has a significant Muslim population.

“A serious incident took place in Sambhal, where a survey team was intentionally sent in the morning to disrupt election discussions. Their goal was to create chaos and prevent any debate on election-related issues,” Yadav claimed.

He said that several individuals were injured in the Sambhal violence, with one fatality, and questioned the need for a new survey conducted without proper preparation, especially when a previous survey had already been completed.

The Samajwadi Party chief said, “I won’t delve into legalities, but the other side wasn’t given a fair hearing. This was clearly designed to incite emotions and distract from conversations about electoral fraud.”

Yadav asserted that the events in Sambhal were a deliberate act by the BJP to divert attention from the alleged electoral irregularities. “In a true democracy, victory should come from the people, not the system. The kind of democracy the BJP is establishing ensures that the system prevails over the voters,” he stated.

He said that impartial investigations would reveal that many voters were unable to cast their ballots and that someone else had fraudulently voted in their place.

He charged that on election day, the police and administration removed nearly all of the Samajwadi Party’s booth agents and many supporters eager to vote. “If voters were shut out, who actually cast the votes? If our party’s votes didn’t reach those booths and our candidate received no support, then who voted there? This is a serious concern,” he said.

Yadav also pointed out discrepancies with polling slips, alleging the presence of both red-marked and regular slips, which he claimed led to discriminatory practices on voting day. Haji Rizwan, the Samajwadi Party candidate for Kundarki, echoed the same claims, stating that his supporters faced barriers to voting. BJP’s Ramveer Singh won the Kundarki bypoll by a notable margin of over 145,000 votes.

Yadav said that a victory gained through deceit is nothing but an illusion that ultimately burdens those who orchestrated it. “This entire act has been staged by the BJP. Such a victory only morally weakens those who achieve it and dulls their conscience,” he said.

He questioned how one can uphold democracy when the government and administration themselves engage in oppression. “This dishonesty is not a new phenomenon. Election rigging has become their standard operating procedure, and the evidence has been captured on camera. Even an MLA faced humiliation,” the former chief minister alleged.

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Former CJI Chandrachud removed fear of law from political defectors, claims Shiv Sena (UBT) leader Sanjay Raut

 “If he would have given a timely verdict in disqualification petition of Shiv Sena (UBT), the scenario in Maharashtra would have been different. History will never forgive him,” he said. 

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Shiv Sena (UBT) leader Sanjay Raut on Sunday criticised former Chief Justice of India D Y Chandrachud, accusing him of undermining the rule of law for politicians who switched parties in Maharashtra.

This statement from Raut follows his party’s disappointing performance in the recent state Assembly elections, where they secured only 20 out of the 95 seats contested within the Maha Vikas Aghadi (MVA) alliance. The results for the alliance’s partners were similarly poor, with Congress winning 16 of 101 seats and the NCP (SP) claiming just 10 of the 86 seats they contested for.

Raut asserted that by failing to rule on the disqualification petitions, Chandrachud enabled defections to occur freely.

Speaking to reporters, Raut said: “Chandrachud has eradicated the fear of the law among defectors. His actions will be remembered negatively in history.”

After the split of the Shiv Sena in 2022, the faction led by Uddhav Thackeray filed petitions in the Supreme Court seeking the disqualification of MLAs who defected to join Eknath Shinde. The Supreme Court subsequently assigned the responsibility to the Assembly Speaker, who earlier this year ruled that the Shinde-led faction represented the real political party.

Raut said the result of the Maharashtra Assembly election 2024 could have been different if Chandrachud had not delayed the decisions regarding disqualification petitions.

 “If he would have given a timely verdict in disqualification petition of Shiv Sena (UBT), the scenario in Maharashtra would have been different. History will never forgive him,” he said. 

“The choice of Maharashtra’s Chief Minister will be dictated by the Gujarat lobby. Perhaps the swearing-in ceremony should take place in Gujarat instead of Maharashtra,” he said. Additionally, Raut credited the Rashtriya Swayamsevak Sangh (RSS) for their role in the success of the Mahayuti coalition, alleging that their aggressive campaigning techniques significantly influenced the election results.

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