Chidambaram slams govt, asks why RBI is infusing liquidity


New Delhi, May 23 (IANS): Former Union Finance Minister and senior Congress leader P. Chidambaram, on Saturday, slammed the central government and questioned why the Reserve Bank of India (RBI) is infusing more liquidity as the growth in financial year 2020-21 is headed towards negative territory.

In a series of tweets, Chidambaram said, "RBI Governor says demand has collapsed, growth in 2020-21 headed toward negative territory. Why is he then infusing more liquidity?"

The former Minister in next tweet also said that Shaktikanta Das should bluntly tell the government -- "Do your duty, take fiscal measures".

"Even after RBI's statement, is the Government or Finance Minister (Nirmala Sitharaman) lauding themselves for a package that has fiscal stimulus of less than 1 per cent of gross domestic product (GDP)?" he said.

Slamming the Rashtiya Swayamsewak Sangh (RSS), Chidambaram said, "RSS should be ashamed of how the government has dragged the economy into negative growth territory."

His remarks came a day after the RBI delivered an emergency rate cut for the second time in as many months on Friday as it judged that the Covid-19 pandemic poses a grave threat to the country and will lead to the first economic contraction in 40 years.

Das on Friday announced a 40 basis points (bps) cut in repo and reverse repo rates, while markedly pivoting the central bank's focus from inflation control to fostering growth. Das pledged to take whatever "measures are necessary" to meet the challenges posed by the pandemic.

He also said that India's GDP growth rate for the financial year 2020-21 is likely to be in the negative territory.

  

Comment on this article

  • Alwin, Mangalore

    Sat, May 23 2020

    Aarthik chetan ki Naya yayakaran

    DisAgree Agree Reply Report Abuse

  • R.Bhandarkar, Mangaluru '

    Sat, May 23 2020

    When he was in power all this fella did was fraudulent endeavors like the FIPB approvals which landed him in Tihar...
    Now with a straight ಸ್ಟ್ರೈಟ್ face he is advising every other day ..
    Did you do anything except amass wealth by looting the exchequer ?
    Have any self respect... keep quiet.
    By the way if you are here.. why isn't your flyovet hero not talking to you and talking to entities like Raghu, Abbu and Subbu? ... because he knows..

    DisAgree [38] Agree [10] Reply Report Abuse

  • Eddison Dsouza, mangalore

    Sat, May 23 2020

    Still economy was far better than the present situation

    DisAgree [4] Agree [13] Reply Report Abuse

  • j.anata, Mangaluru / Bengaluru

    Sat, May 23 2020

    Tihar returned Chidu

    DisAgree [30] Agree [7] Reply Report Abuse

  • Kumar, Mangalore

    Sat, May 23 2020

    We don’t deserve educated like PC, RR, MMS. All we have to do is blame congress, Nehru and Gandhi. If this is the phase move forward, everyone will feel the pain of missing them. Until then, lets continue to blame...

    DisAgree [5] Agree [34] Reply Report Abuse

  • geoffrey, hat hill

    Sat, May 23 2020

    This is happening because RBI chief is an MA in history, FM is a JNU grad and the ring master is the only master in Entire Political Science in the universe.

    DisAgree [9] Agree [36] Reply Report Abuse

  • Mario Almeida, Falnir

    Sat, May 23 2020

    In politics, dear Hat Hill, what is required in honesty, integrity, dedication, nationalism and clean.
    Learned bureaucrats and pragmatic economists are there to guide them.
    Chidu is you-know-what and an advocate. What does he know about liquidity other than his pocket?

    DisAgree [3] Agree [2] Reply Report Abuse

  • Sandhya K Rai, Mangalore

    Sat, May 23 2020

    Mr Chiddu. Please put nation ahead of politics, Liquidity is required for the short term every human on earth understands this much as they are jobless and need money for meeting immediate needs. Please advise wisely if you can. Else just keep off and join some 'home for the aged' . Nation is in crisis and jokes are not the norm today and your comment looks like jibe. Stop uttering words that are politically motivated, You are not someone that carers about your own nation. Who you care is now exposed to us.

    DisAgree [39] Agree [11] Reply Report Abuse

  • Vijay Benedict, Mangalore

    Sat, May 23 2020

    Look who is talking!!!! Does India need an advise from a Tihar returned Guy? The most corrupt FM till date giving Gyan and then they blame RaGa for decimating Congress!

    DisAgree [37] Agree [10] Reply Report Abuse

  • Bhavya Baliga, Udupi

    Sat, May 23 2020

    "It should have gone into my account instead!!" roared the financial wizard of the country!!!!!

    DisAgree [37] Agree [12] Reply Report Abuse

  • Ryan, Mangalore

    Sat, May 23 2020

    Bhavya,

    PC may be an accused in corruption case but whatever he has mentioned on the current scenario, he is right. There is no need to infuse liquidity instead fiscal measures are required.

    DisAgree [9] Agree [40] Reply Report Abuse


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