Union Home Minister, P Chidambaram speaks during an interaction with Gujarat media representatives at the Ahmedabad Management Association (AMA) in Ahmedabad on June 13, 2012. In a first of its kind initiative, the Group of Union Ministers addressed a press conference in Ahmedabad covering various issues. AFP PHOTO / Sam PANTHAKY New Delhi : The Congress on Thursday blamed Prime Minister Narendra Modi and Finance Minister Arun Jaitley for “monumental mismanagement” of the economy.
Former union minister and senior Congress leader Anand Sharma said India is in a real danger of slipping into economic depression. He demanded a white paper from the government on the state of the Indian economy.
“PM Modi is singularly responsible for inflicting grave damage on the economy by his reckless decisions including demonetisation and hasty imposition of a flawed GST. The disastrous implementation has hurt the industry, small entrepreneurs and traders,” Sharma said.
The former Union Minister said Modi and Jaitley were “in denial and are clueless on addressing the crisis of their own making”. “They are guilty of monumental mismanagement of the Indian economy.”
He said the informal sector has been badly hit due to government’s decisions.
He also asked the government to restore the health of PSU banks through urgently needed recapitalisation and disclose the measures it proposes to arrest the free fall of the economy. He said these banks are burdened with over Rs 9 lakh crore of NPAs (Non-productive assets) and the failure of the government to infuse the capital is equally a matter of concern.
“Many Banks face the risk of global downgrading and even collapse. There is no guarantee for securing hard earned money and savings of our people,” Sharma said.
“Small businesses are shutting down resulting in more job losses. A cash flow issue has been created for the industry with shortage of capital for the exporters. Tax terrorism has been let loose as the input credit refunds are not made,” he said.
It is the same prime minister Modi who has betrayed the youth after promising 10 million jobs a year as his government has not only failed to create jobs but it also destroyed tens of millions of jobs by its irresponsible and wrong policies and decisions, he said.
“Prime Minister remains unmoved, unapologetic and arrogant. He continues to evade responsibility which is essential in a parliamentary democracy,” Sharma added.
He said the appointment of PM’s Economic Advisory Council after 40 months is purely cosmetic and a farcical exercise.
Chidambaram’s scathing questions
In a series of tweets, P Chidambaram on Thursday tore apart the logic advanced by BJP’s Jayant Sinha crediting the Modi government with carrying out structural changes in the economy.
Chidambaram asked:
*If Jayant Sinha is right, why is the outcome a steady decline in GDP growth over 5 quarters?
* If Jayant Sinha is right, why is there poor demand for electricity and plant load factor at 50-60 per cent?
* If Jayant Sinha is right, why is credit growth to industry negative?
* If Jayant Sinha is right, why is there no increase in private investment?
