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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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PM Modi urges people to read Tirukkural on Thiruvalluvar Day

Prime Minister Narendra Modi on Thiruvalluvar Day appealed to people to read the Tirukkural, calling it a reflection of the humane and harmonious ideals of Tamil philosopher-poet Thiruvalluvar.

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Prime Minister Narendra Modi on Friday urged people across the country to read the Tirukkural, highlighting its enduring relevance and the intellectual legacy of Tamil philosopher-poet Thiruvalluvar.

Marking Thiruvalluvar Day, which coincides with the Pongal celebrations every year, the prime minister paid tribute to the revered scholar, describing him as a symbol of harmony, compassion and Tamil cultural excellence.

In a message shared on social media platform X, Modi said Thiruvalluvar’s works and ideals continue to inspire countless people even today. He noted that the philosopher envisioned a society rooted in compassion and balance.

The prime minister encouraged citizens to engage with the Tirukkural, a classical Tamil text that deals with various aspects of human life, ethics and governance, calling it a window into the profound intellect of Thiruvalluvar.

Thiruvalluvar Day is observed annually to honour the philosopher-poet, whose literary contributions remain central to Tamil culture and thought.

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BJP, Thackerays or Pawars: Maharashtra civic body poll results awaited today

Counting of votes for 29 municipal corporations in Maharashtra, including the key BMC and Pune civic bodies, begins today, with BJP, Thackerays and Pawars awaiting crucial results.

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The political balance in Maharashtra’s urban centres will become clearer today as votes are counted for elections to 29 municipal corporations across the state. The results are keenly awaited amid high-stakes contests involving the BJP, the Thackeray cousins and the reunited Pawar factions.

Polling was held for 2,869 seats across 893 wards, with 3.48 crore eligible voters deciding the fate of 15,931 candidates. Counting is scheduled to begin at 10 am.

Mumbai and Pune in sharp focus

All eyes are on Mumbai, where the contest for the Brihanmumbai Municipal Corporation (BMC) has drawn statewide attention. Shiv Sena (UBT) chief Uddhav Thackeray and Maharashtra Navnirman Sena chief Raj Thackeray joined hands after more than two decades in a bid to reclaim control of the country’s richest civic body.

The BMC, which has an annual budget of over Rs 74,400 crore, went to polls after a nine-year gap, following a four-year delay. A total of 1,700 candidates contested the 227 seats.

Exit polls suggest a strong performance by the BJP–Shiv Sena (Eknath Shinde faction) alliance in Mumbai. An aggregate of multiple surveys projects the ruling alliance ahead, with the Shiv Sena (UBT) and allies trailing, while the Congress is expected to secure a limited number of seats. Exit polls have also indicated possible voting consolidation among Maratha and Muslim voters behind the Thackeray-led alliance, while women and young voters may tilt towards the BJP.

The last BMC election in 2017 saw the undivided Shiv Sena retain control of the civic body it had dominated for decades.

In Pune, the spotlight is on the unusual alliance between rival NCP factions led by Ajit Pawar and Sharad Pawar. Exit polls indicate the BJP could emerge as the largest party in the Pune Municipal Corporation (PMC), with both NCP factions and the Shiv Sena also expected to secure a share of seats.

Statewide counting underway

Apart from Mumbai and Pune, counting will take place in several other key municipal corporations, including Thane, Navi Mumbai, Kalyan-Dombivli, Nagpur, Nashik, Pimpri-Chinchwad, Mira-Bhayandar, Vasai-Virar, Solapur, Kolhapur, Amravati, Akola, Jalgaon, Malegaon, Latur, Dhule, Jalna, Sangli-Miraj-Kupwad, Nanded-Waghala, Chandrapur, Parbhani, Panvel, Bhiwandi-Nizampur, Ulhasnagar, Ahilyanagar and Ichalkaranji.

With major parties treating these civic polls as a referendum on their urban appeal ahead of future state and national elections, today’s results are expected to shape Maharashtra’s political narrative in the months to come.

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Supreme Court flags risk of lawlessness, pauses FIRs against ED officers in Bengal case

The Supreme Court paused FIRs against ED officers in the Bengal I-PAC raid case, warning that obstruction of central probes could lead to lawlessness and seeking responses from the Centre and state.

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The Supreme Court on Wednesday delivered a sharp rebuke to the Mamata Banerjee-led West Bengal government, pausing FIRs lodged against officers of the Enforcement Directorate over searches linked to political consultancy I-PAC. The court said the case raises serious questions about interference in investigations and warned that failure to address them could lead to “lawlessness”.

A bench of Justice Prashant Mishra and Justice Vipul Pancholi sought replies from the Ministry of Home Affairs, the Department of Personnel and Training, Chief Minister Mamata Banerjee and the Trinamool Congress government on the ED’s plea. The central agency has also sought the suspension of Bengal Director General of Police Rajeev Kumar and Kolkata Police Commissioner Manoj Kumar Verma, and a probe by the CBI. The matter will be heard next on February 3.

The ruling follows a standoff between the ED and the Bengal government after the agency conducted searches at premises linked to I-PAC, which manages election campaigns for the Trinamool Congress, in connection with a corruption case.

Court questions obstruction of central probes

Recording its prima facie view, the Supreme Court said the petition raised a “serious issue” concerning investigations by central agencies and possible obstruction by state authorities.

“There are larger questions which emerge and if not answered shall lead to lawlessness. If central agencies are working bona fide to probe a serious offence, a question arises: Can they be obstructed by party activities?” the bench observed.

Earlier in the day, the court also expressed disturbance over scenes of chaos in the Calcutta High Court during a hearing related to the same dispute.

ED alleges interference, seeks action against top cops

The Enforcement Directorate accused the West Bengal administration of interfering with its searches and investigation. Appearing for the agency, Solicitor General Tushar Mehta alleged that evidence was removed from the residence of an I-PAC co-founder and argued that such actions could encourage state police officers to aid and abet obstruction. He sought suspension of senior police officials.

Describing the disruption in the Calcutta High Court on January 9, Mehta called it “mobocracy”, saying a group of lawyers unconnected to the case disrupted proceedings, forcing an adjournment. The bench asked whether the high court had been turned into a protest site, to which Mehta responded that messages had circulated calling lawyers to gather at a specific time.

Banerjee’s counsel defends move, cites election confidentiality

Senior advocate Kapil Sibal, appearing for Mamata Banerjee, questioned the timing of the ED’s presence in Bengal ahead of Assembly elections. He said the last development in the coal scam case dated back to February 2024 and argued that I-PAC handled election-related work under a formal contract with the Trinamool Congress.

According to Sibal, election data stored at the premises was confidential and critical to campaign strategy. He said the party leadership had a right to protect such information.

Representing the Bengal government and the DGP, senior advocate Abhishek Singhvi referred to the January 9 disruption but argued it could not justify parallel proceedings in different courts. The bench responded that emotions “cannot go out of hand repeatedly”.

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