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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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Centre ready for NEET debate in Parliament, Rahul Gandhi’s paper leak claims to be investigated: JP Nadda

Union Health Minister JP Nadda said the government is prepared for a detailed Parliament debate on the NEET paper leak issue and will investigate Rahul Gandhi’s allegations of multiple paper leaks over the last decade.

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The Centre has reiterated its willingness to hold a detailed discussion on the NEET paper leak issue in Parliament, with Union Health Minister JP Nadda saying the government is prepared for a debate of any duration. He also said Leader of the Opposition Rahul Gandhi’s allegations of around 152 examination paper leaks over the past 10 years would be investigated.

Government open to debate of any duration

Speaking to the media on Wednesday, JP Nadda said the government has consistently supported a discussion on the paper leak issue in Parliament. He stated that the Opposition could decide the duration of the debate through the Business Advisory Committee, whether it is a short discussion or one extending to 12 or even 18 hours.

Nadda, who is also the Leader of the House in the Rajya Sabha, said the government remains fully prepared for a comprehensive discussion and urged the Opposition not to shift its position on the issue.

Rahul Gandhi’s paper leak allegations to be examined

Responding to Rahul Gandhi’s recent presentation, Nadda said the Congress leader referred to nearly 150 paper leak incidents over the last decade. He described those claims as a matter that requires investigation and said the government would examine the allegations before presenting the facts to the public.

According to Nadda, a responsible government is committed to verifying such claims and ensuring that the truth is established through due investigation.

Calls for a united approach on NEET issue

Highlighting the significance of the matter, Nadda said the future of students should remain the top priority for both the government and the Opposition. He appealed to political parties to work together in finding a long-term solution to prevent examination irregularities.

He added that safeguarding the interests of students is a shared responsibility and called for constructive cooperation instead of political differences.

Nadda on meeting with CJP representatives

The Union Minister also spoke about his recent interaction with representatives of the Cockroach Janata Party (CJP). He said the meeting was held in a cordial atmosphere, during which the government listened to their concerns and asked them to submit their suggestions in writing.

Nadda said the government remains open to further discussions whenever required and clarified that no meeting with the group was held on Wednesday.

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Opposition demands Dharmendra Pradhan’s resignation before NEET discussion in Parliament

The Opposition has demanded Union Education Minister Dharmendra Pradhan’s resignation before any discussion on the NEET paper leak in Parliament, while the Centre says it is fully prepared for a debate.

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The political deadlock over the NEET paper leak issue continued in Parliament on Wednesday, with Opposition parties demanding the resignation of Union Education Minister Dharmendra Pradhan before any discussion takes place. The Centre, however, maintained that it is fully prepared to debate the matter during the ongoing Monsoon Session.

Leading the Opposition in the Rajya Sabha, Congress president Mallikarjun Kharge said there could be no fair discussion on the NEET issue unless Dharmendra Pradhan resigned from his post.

Centre rejects Opposition’s condition

Responding to the Opposition’s demand, Leader of the House JP Nadda said the government was not avoiding a discussion and remained open to debating all issues, including the alleged NEET paper leak.

He said the government had already made its position clear and described it as transparent, adding that it was willing to discuss every matter raised by the Opposition.

Parliamentary Affairs Minister Kiren Rijiju also reiterated that the Centre had been ready for discussions since the beginning of the Monsoon Session. He said the government had consistently conveyed its willingness to debate the NEET issue and other important matters.

Rijiju added that if the Opposition was looking for reasons to avoid a discussion, it would not be appropriate. According to him, the procedure and timing of the debate would be decided after consultations among all parties under the Chair’s guidance.

Opposition maintains resignation demand

The government also informed the House that its willingness to discuss the issue had been communicated to Congress leaders and representatives of other political parties.

Samajwadi Party chief Akhilesh Yadav echoed the Opposition’s stand, saying students were seeking the resignation of the Education Minister before any discussion. He asserted that the resignation should come first, followed by parliamentary debate on the issue.

Akhilesh Yadav also joined Rahul Gandhi and other Opposition MPs during a march towards the Prime Minister’s residence in New Delhi on Tuesday as part of the protest over the NEET controversy.

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Protesters pour in to Jantar Mantar, Centre readies for discussion in Parliament

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The agitation led by the Cockroach Janta Party (CJP) over alleged irregularities in the NEET-UG examination continued on Wednesday, with more people making a queue to join the demonstration at Jantar Mantar despite Delhi Metro shutting station gates, police action, ongoing negotiations with the Centre and heightened security across the capital.

Protesters regrouped at Jantar Mantar from late at night on Tuesday with CJP leaders warning that the Parliament march was “just a trailer” and that larger demonstrations would follow if the government failed to respond. The protest’s impact was also felt in Parliament, where repeated Opposition protests over the police action led to disruptions and adjournments in both the Lok Sabha and the Rajya Sabha.

Last evening, Congress leaders led by Rahul Gandhi and Priyanka Gandhi and Samajwadi Party president Akhilesh Yadav had staged a demonstration outside PM Narendra Modi’s residence. While Rahul’s protest drew kudos all around, AAP leaders mocked him for trying to hijack the movement that had been led by the CJP.  

In a related development, the Supreme Court declined an urgent hearing on a plea seeking intervention over the alleged police action against CJP protesters, directing the petitioner to follow the regular listing procedure.

Meanwhile, Delhi Police registered multiple FIRs in connection with Monday’s violence and maintained heavy deployment around Parliament House and Jantar Mantar. The Delhi Metro Rail Corporation closed 16 Metro stations across central Delhi, with trains passing through without halting. Interchange facilities were available at Rajiv Chowk, Mandi House and Central Secretariat, while commuters were advised to check official service updates. Traffic diversions and station closures disrupted travel across the city.

With protesters refusing to withdraw and the Centre signalling that dialogue will continue, the agitation remains one of the biggest political challenges confronting the government during the Monsoon Session.

The CJP agitation took on a new lease of life and urgency on Monday when thousands of CJP supporters marched to Parliament under the banner of Chalo Sansad on the opening day of the Monsoon Session. Protesters demanded the resignation of Education Minister Dharmendra Pradhan, a parliamentary debate on the alleged examination irregularities and reforms in the examination system. Delhi Police stopped the procession near Parliament, citing security concerns and the absence of permission. They then used tear gas and lathicharged the march saying some protesters attempted to cross barricades. Several demonstrators, including CJP founder Abhijeet Dipke, were briefly detained. Over 100 students were treated for injuries including fractures and pellet wounds, a similar number of police personnel were also injured thought not as severely, reports said.

The stalemate in the government position to engage with the protesters broke on Monday. Health Minister JP Nadda met a CJP delegation, which submitted a memorandum outlining its demands. Government sources said the minister urged protesters to end the agitation and assured them that their concerns would be examined. However, CJP leaders said the meeting produced no concrete outcome and vowed to continue the protest.

Activist Sonam Wangchuk, who was forcibly moved to hospital by police after his health deteriorated on his indefinite fast, remains under medical supervision with the court’s clearing his request to be moved from Safdarjung Hospital to Medanta hospital.

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