Rethink & revise’ the package: P. Chidamabaram

Congress leader and former finance minister P. Chidambaram has once again hit out at Prime Minister Narendra Modi for the useless economic package

1.  P. Chidambaram hits out at PM for the package

P. Chidambaram has demanded the Prime Minister Narendra Modi and Finance Minister Nirmala Sitharaman to rethink the Rs 20 lakh crore relief package

2. Chidambaram demands PM to rethink the package

According to Chidambaram, the stimulus package designed and announced by the government has fiscal stimulus of less than 1 per cent of GDP

3. Package has fiscal stimulus of less than 1%

The Reserve Bank of India should "bluntly tell the government to do your duty (and) take fiscal measures" to protect and re-start a national economy battered by the coronavirus outbreak, Congress leader P Chidambaram said

4. RBI should be blunt to the government: Chidambaram

The government has described the package as being worth 10 per cent of the GDP."Governor Shaktikanta Das says demand has collapsed, growth in 2020-21 headed toward negative territory.

5. Growth in 2020-21 will be negative:RBI

"Why is RBI then infusing more liquidity? The RBI governor should bluntly tell the government to do it's duty and take fiscal measures'," the veteran Congress leader said.

6. Why is RBI infusing liquidity?: Chidambaram

"Even after RBI's statement, is the PMO or Nirmala Sitharaman lauding themselves for a package that has fiscal stimulus of less than 1 per cent of GDP?" he asked.

7. PMO and Finance Minister are lauding themselves for what?

The former Finance Minister's comments came after the RBI said GDP could contract further than it has this year and "is estimated to remain in negative territory" in the next.

8. Chidambaram reacted as RBI predicted negative growth rate of GDP

RBI Governor Shaktikanta Das   announced a 40 basis point reduction in the repo rate, dropping it from 4.4 per cent to 4 per cent.

9. RBI has announced a reduction in repo rate by 40 basis points

The reduction, coupled with an extension of moratorium on loan repayments till August, is expected to infuse liquidity into an economy struggling to create demand.

10. RBI is infusing liquidity to create demand

P Chidambaram has been among the most vocal critics of the government's Rs 20 lakh crore fiscal stimulus package, arguing that it "has left several sections high and dry".

11. P. Chidambaram has criticized the package

"...A fiscal stimulus of Rs 1,86,650 crore amounting to barely 0.91 per cent of GDP will be totally inadequate given the gravity of the economic crisis and the dire situation in which people find themselves," he said in a statement released this week.

12. The package is totally inadequate: P. Chidambaram

Chidambaram had previously questioned facets of the package, including pointing out that two measures related to agriculture and allied activities were part of last year's Expenditure Budget

13. Government falsely projected old measures in the present package

He also pointed out at collateral-free loans for MSMEs  which was in apparent contradiction of a statement by Union Minister Nitin Gadkari.

14. Chidambaram also pointed out at contradiction in loans for MSMEs

In his tweets Mr Chidambaram also took a swipe at the RSS after a pan-India worker's group affiliated to group, regarded as the ideological mentor of the ruling BJP, criticised the government over policy announcements seen as leading to privatisation and job cuts.

15. RSS should be ashamed of how the government has dragged the economy into negative growth territory:

Chidambaram