PTI, NEW DELHI: Former finance minister P Chidambaram today said the state of the economy was bad due to wrong policies of the NDA government and that the tyres of three of the four wheels on which the economy rides were punctured.
He said a “flawed road” to GST continued to haunt trade and business, and that the adverse effect of demonetisation had been established “beyond doubt”.
He also advocated bringing petrol and diesel under GST and asked why the central government was passing the buck to states. If the BJP was committed to bringing petrol and diesel under GST, it should go ahead and do it, he said.
“Why are you blaming a few finance ministers from non-BJP (state) govts? If you bring petroleum products under GST, the prices will decline immediately. I am not saying cut it by Rs 25…Cut it by Rs 5, Rs 6 or Rs 7. Why you are cutting it by one paisa?”
Chidambaram alleged that there was distress in various sections of the society, including farmers who were not getting remunerative prices of their produce and the youth due to joblessness.
“The tyres of three of the four wheels on which the economy rides are punctured. Firstly exports: the growth rate in the last four years have 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 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.
“I don’t think the situation in the world economy is affecting India, what is affecting India is our own policies, our reckless decisions and our administrative incompetence,” he said.
