Chidambaram cited RBI's Consumer Confidence Survey of May 2018 and said that 48 per cent of those surveyed felt that economic conditions had worsened in the last 12 months.
A war of words started between the Congress and the BJP on the state of economy on Monday with former finance minister P Chidambaram poking holes in 'Modinomics' for puncturing three of the four tyres of economy — exports, private investment and private consumption.
Portraying a dismal picture of the overall economy under the Modi government, Chidambaram dished out data to raise question marks on dipping jobs, exports, farm income amid rising inflation. He blamed the ill-conceived step of demonetization and flawed implementation of GST as the main reasons for the economic ills.
Chidambaram cited RBI's Consumer Confidence Survey of May 2018 and said that 48 per cent of those surveyed felt that economic conditions 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 actually be higher," he said.
He blamed the Modi government for the farmer's unrest claiming that principal reasons are uneconomic prices for farm produce and stagnant wages of farm labour, and dubbed that 'MSP = Cost + 50 per cent' formula a 'jumla'.
Questioning the government on joblessness, he asked why the Labour Bureau Survey for Oct-Dec 2017 has not been released yet. Mocking at PM Modi, Chidambaram said, "So far, nobody has bought the innovative idea that 'frying pakoras is also a job."
Chidambaram said in exports, the growth rate in the last four years has been negative, the private investment is in the doldrums as Gross Fixed Capital Formation (GFCF) is stuck at 28.5% for three years and in private consumption there has been only a mild uptick.
He said in the only option of government expenditure, the options are getting limited because of the pressure on the current account deficit and the fiscal deficit.
Chidambaram said the increase in Gross NPAs from Rs 2,63,000 crore to Rs 10,30,000 crore in the last four years has reduced the credit growth to industry from 5.6 to 2.7, -1.9 and 0.7%.
Strong With Fact
Chidambaram cited RBI’s Consumer Confidence Survey of May 2018, and said that 48 per cent of those surveyed felt that the economic conditions had worsened in the last 12 months.
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