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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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P chidambaram

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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2024 Lok Sabha Elections

PM Modi says Congress leaders consider themselves above Lord Ram

PM Modi slammed Congress during a rally in Chhattisgarh, ahead of the Lok Sabha elections 2024

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Prime Minister Narendra Modi slammed the Congress party for declining to attend the pran pratishtha ritual at the Ayodhya Ram temple on January 22 this year.

The prime minister said Congress leaders consider themselves above Lord Ram and denied invitation for Pran Pratishtha at Ram Temple, while speaking at a rally in Janjgir-Champa, Chhattisgarh. The PM question the people present at the rally that is it not a disrespect of Mata Shabri? Congress leaders inclination toward appeasement politics runs in their family.

For political appeasement, they won’t think twice about stealing the rights of Adivasis, the poor, and Dalits. Poor, young, and women are BJP’s top priorities, Modi said.

PM Modi criticized the Congress again during the rally for claiming that the BJP would alter the constitution.

The leaders of Congress recite the same old phrases whenever an election is about to happen, the PM said. He also said they claim that if the BJP wins power, it will renounce the constitution and abolish reservations. For how long will you continue selling lies?” he asked.

The prime minister continued saying that nobody can change the Constitution, even if Dr. Babasaheb Ambedkar were to come and insist on it, it wouldn’t happen.

Those in the Congress threaten to break Modi’s head. Nobody can harm Modi as long as the mothers and sisters of this county stands by him. These mothers and sisters are Raksha Kavach, Modi remarked.

The prime minister further attacked the Congress after Viriato Fernandes, the party’s candidate for South Goa, asserted that Goa was forced to adopt the Indian Constitution.

Referring to his conversation with Congress leader Rahul Gandhi ahead of the 2019 Lok Sabha elections, Fernandes said he had told him, when Goa was liberated in the year 1961, the Indian Constitution was forced upon us.

The prime minister said, Congress candidate from Goa says Constitution was forced upon Goans; is this not an insult of Ambedkar and Constitution.

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2024 Lok Sabha Elections

Amit Shah says neither Congress nor Trinamool chief Mamata Banerjee can interfere with CAA

Amit Shah revealed the BJP’s target for West Bengal and said they have set a target of winning 35 Lok Sabha seats from West Bengal.

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Union home minister Amit Shah on Tuesday said neither Congress nor Trinamool Congress chief Mamata Banerjee can interfere with the Citizenship Amendment Act (CAA). He was speaking at the Karandighi rally in West Bengal where he also made the prediction as to how many seats BJP will win in the Lok Sabha elections in West Bengal.

The union home minister asked the masses to cut the money culture. Amit Shah revealed the BJP’s target for West Bengal and said they have set a target of winning 35 Lok Sabha seats from West Bengal. In 2019 Lok Sabha elections the BJP had won 18 out of 42 seats in West Bengal. He asked Mamata Banerjee, what problem will she have if the Buddhist and Hindu refugees from Bangladesh get citizenship in India?

Shah further added if the people of West Bengal want to stop infiltration in the state, then they will have to make Narendra Modi the Prime Minister of India again. He said if the people of West Bengal want to free Bengal of violence, stop infiltration in the state, give citizenship to refugees, to stop disrespecting mothers and sisters of the state as it happened in Sandeshkhali, then  only way is to make Narendra Modi the Prime Minister.

Amit Shah said that PM Modi had sent Rs 7 lakh crore to West Bengal but the TMC indulged in corruption. He said one can see the houses of Trinamool Congress leaders; 10 years ago they used to live in a hut, moved on cycle and now all of them have 4-storey houses and move around in big cars. He added this is the money of people of West Bengal.

The Citizenship Amendment Act (CAA), will make it easier for non-Muslim refugees from Afghanistan, Pakistan and Bangladesh to get Indian citizenship, was enacted in 2019. But the rules were notified in March this year by the Centre.

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2024 Lok Sabha Elections

Prime Minister Narendra Modi says listening to Hanuman Chalisa under Congress rule is a crime

PM Modi was addressing an election rally in Rajasthan’s Tonk-Sawai Madhopur, on a day as India celebrates Hanuman Jayanti.

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Prime Minister Narendra Modi on Tuesday hit out at the Congress and said even listening to Hanuman Chalisa has become a crime under the party’s rule. The Prime Minister also said it was difficult to follow one’s faith under the party and accused it of hatching a deep conspiracy to snatch people’s wealth and distribute it among selected few people in the society. PM Modi was addressing an election rally in Rajasthan’s Tonk-Sawai Madhopur, on a day as India celebrates Hanuman Jayanti.

PM Modi said in a state like Rajasthan where people chant Ram-Ram, Congress banned Ram Navami. He reffered to the redistribution of wealth remarks he had made during a rally in Rajasthan’s Banswara on Sunday and said it has angered the Congress and INDI Alliance so much that they have started throwing abuses at Modi everywhere.

The Prime Minister said that Congress has written in their manifesto that they will survey the wealth. He said the Congress leadership had said in a speech that an X-ray of wealth will be done. He added when Modi exposed the secret then the hidden agenda came out and this has left the people trembling. PM Modi further added that the Congress party has played with the Constitution of the India.

He said when the Constitution was drafted, reservations based on religion were opposed, so that Scheduled Casts (SC), Scheduled Tribes (ST) and Other Backward Classes (OBC) could get protection. He said former Prime Minister Dr Manmohan Singh had said that Muslims have the first right to the country’s resources.  The prime minister further added Congress’s ideology has always been of appeasement and vote bank politics. He said stones would still be pelted in Jammu and Kashmir, and enemies would still be cutting off the heads of India’s soldiers had Congress been in power.

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