Tyres of Indian economy punctured, policy blunders responsible: Chidambaram
New Delhi, June 11: Former Finance Minister P. Chidambaram on Monday said three out of the four wheels of the national economy have been "punctured" and held the BJP government's "administrative incompetence", "reckless decisions" and "policy blunders" responsible for the rising farm distress, unemployment and economic failure.
"The tyres on 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 (GFCF) is stuck at 28.5 per cent for three years," he told reporters here.
"Thirdly, private consumption: it was limping until a few months ago, there is a mild uptick, and we keep our fingers crossed."
He said the only tyre that seemed to be inflated was government expenditure.
"But here too, the government's options are getting limited because of the pressure on the current account deficit (CAD) and the fiscal deficit (FD)," he said.
"I do not think, situation of the world economy is affecting India. What is affecting (us) is our own policy blunders, reckless decisions and administrative incompetence," he said.
Chidambaram said the Reserve Bank of India's confidence survey stated that 48 per cent felt that the economic situation of the country had worsened in the last 12 months.
"The survey is unlikely to have covered the most backward parts of the country or the most deprived sections of the people. Therefore, the number of 48 per cent will be actually higher," he said.
The senior leader said farm income was not rising even at a fraction of the growth rate of the economy and farm wages were constant for the last three-four years.
"At these rates, it will take another 14 years to double farmers' income," he said while taking a dig at the Narendra Modi government's plan to double farm income by 2022.
He said farmers' despondency had turned into anger and they had come on to the streets to protest.
"The principal reasons are uneconomic price for farm produce and stagnant wages of farm labour. MSP (Minimum Support Price) is not adequate. Every farmer knows that the promise of MSP = Cost + 50 per cent is a 'jumla'," he said.
Chidambaram said unemployment was rampant in the country, which was a "far cry" from the Bharatiya Janata Party's promised two crore jobs a year.
"There is great ferment in campuses across the country because young men and women know that there will be no jobs when they graduate. So far, nobody has bought the innovative idea that 'frying pakoras is also a job'," he said.
He questioned why the Labour Bureau Survey for October-December 2017 was not yet released.
Chidambaram said the gross NPAs (Non-Performing Assets) had risen in the last four years from Rs 2,63,000 crore to Rs 10,30,000 crore and would rise further.
"No bank is willing to lend a big-ticket loan. Credit growth to industry in the last four years was 5.6, 2.7, -1.9 and 0.7 per cent. The Banks Board Bureau (BBB) is an utter failure. Government cannot find the additional money to recapitalise banks," he said.
When asked about fugitive businessmen Nirav Modi and Vijay Mallya, Chidambaram said: "I know, they (government) have made no efforts to get them back. In fact, I doubt if they are making any effort. Our position is that they allowed both the gentlemen to leave the county."
He said demonetisation had caused the growth rate to decline from 8.2 per cent in 2015-16 to 6.7 per cent in 2017-18.
"The Tamil Nadu government has officially acknowledged that 50,000 MSME units were shut down in the state in 2017-18; 5,00,000 jobs were lost; and capital investment in the MSME sector declined by Rs 11,000 crore," he said.
A flawed Goods and Services Tax has continued to haunt trade and business, he added.
Chidambaram said the social security laws and programmes have been neglected by the BJP-led central government.
"The Food Security Act has not been implemented. MGNREGA is no longer demand-driven, wage arrears have mounted. Crop insurance covers barely 30 per cent of farmers, it is a windfall for insurers. Health Protection Scheme is another 'jumla'," he said.
Chidambaram said there was "widespread anger" about the artificially fixed prices of petrol, diesel and LPG.
"There is absolutely no reason why the prices should be higher today than what they were in May-June 2014. It is nothing but a case of fleecing the helpless consumer.
He said if petroleum products are brought under the Goods and Services Tax (GST), their prices will decline "immediately".
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Have no personal involvement in Cong’s action against some minority leaders: Shivakumar
Bengaluru (PTI): Karnataka Deputy Chief Minister D K Shivakumar on Friday said he has no personal involvement in action taken against certain Congress leaders from the minority community following allegations of an internal conspiracy during the recently held Davanagere South bypolls.
He clarified that the decisions were taken by the party high command based on available reports.
Asserting that party discipline is of utmost importance, Shivakumar, who is also the Karnataka Pradesh Congress Committee (KPCC) president, sought to downplay concerns that action against minority leaders may send the message that “Muslims are being targeted.”
“I don’t have any personal involvement in this. Whatever decisions are taken are made by the party leadership. The party has its own reports. Decisions regarding MLAs or MLCs cannot be taken at the state level without instructions from Delhi,” he said.
Speaking to reporters, he added, “People may blame me; I am not concerned. Everyone must function in accordance with party discipline.”
Responding to concerns within sections of the party that recent actions may convey the impression that minority leaders are being targeted, he said the Congress exists for the welfare of Scheduled Castes, Scheduled Tribes, minorities, backward classes, farmers, and all sections of society.
The Congress has suspended MLC K Abdul Jabbar from primary membership and relieved another MLC, Naseer Ahmed, from the post of Chief Minister’s political secretary.
The action followed allegations by a group of Muslim leaders that certain party members conspired to defeat the official candidate in Davanagere South.
Following the action, speculation has emerged that Housing Minister B Z Zameer Ahmed Khan may also face disciplinary measures during the next cabinet reshuffle.
The three leaders had reportedly sought a Muslim candidate for the Davanagere South bypoll ticket, which the party instead allotted to the late MLA Shamanur Shivashankarappa’s grandson, Samarth Mallikarjun.
They were also said to have not actively participated in the campaign.
Shivakumar also rejected claims of factionalism within the ruling party amid speculation that leaders close to Chief Minister Siddaramaiah were being targeted.
Naseer Ahmed and Zameer Ahmed Khan are considered close to the CM.
Rejecting allegations of factionalism within the party, Shivakumar said, “We speak to each other every day. It is the media that creates divisions. Where is my faction? Has anyone put up a board saying they belong to the Siddaramaiah faction? Have I put up any such board?”
“All 139 legislators are my people, and they are all Siddaramaiah’s people as well. Everyone belongs to the Congress,” he added, saying there are no factions within the party and that such claims are media-driven.
Public Works Department (PWD) Minister Satish Jarkiholi met Shivakumar on Friday, a day after expressing concerns that disciplinary action against minority leaders may send the wrong message.
Shivakumar said he discussed with Jarkiholi the need to decongest Bengaluru traffic by diverting vehicles entering the city from state and national highways, along with party-related issues.
“We also discussed political matters in the interest of the party and the need to work together,” he said.
Later, speaking to reporters, Jarkiholi said he discussed with Shivakumar the issue of withdrawing Jabbar’s suspension. He said he will also visit New Delhi next week to meet the high command and discuss state developments.
“Jabbar’s suspension was discussed (with Shivakumar). It should be withdrawn. Let’s issue him a notice and allow him to reply. Then let’s send the report to the high command and seek their approval. High command approval is necessary because the instructions came from there. It may take some time,” he said.
Stating that he met the KPCC chief for “damage control,” the minister said, “We have tried to convince him. Sometimes certain decisions happen that need rectification.”
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