Modi govt’s wrong policies damaging nation’s economy, says Chidambaram
NEW DELHI: Former finance minister P Chidambaram on Monday criticised the government’s handling of the economy, saying its wrong policies had led to farm distress, unemployment and trouble for banks.
Addressing a press conference in New Delhi, Chidambaram said a flawed road to goods and services tax and the adverse effect of demonetisation were hurting various sectors of the economy.
“The three of the four wheels on which the economy rides are punctured. Firstly exports, the growth rate in the last four years has been negative. Secondly, private investment, it is in the doldrums, if not dead. Gross fixed capital formation is stuck at 28.5% for three years. Thirdly, private consumption, it was limping until a few months ago, there is a mild up-pick, and we keep our fingers crossed,” the senior Congress leader said.
Chidambaram said that there was widespread distress, including among farmers who were not getting remunerative prices of their produce, and the youth due to joblessness.
“The only tyre that seems to be inflated is government expenditure, but here, too, the government’s options are getting limited because of the pressure on the current account deficit and the fiscal deficit,” he said.
The Congress leader alleged that joblessness was on the rise and there was anger in campuses across the country because young men and women knew there would be no jobs when they graduate.