Former Finance Minister P Chidambaram on Monday attacked the government’s economic policies and said the tyres of three of the four wheels on which the economy rides were punctured.
“Firstly, exports: the growth rate in the last four years have been negative,” Chidambaram said, according to PTI. “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 fourth “tyre” was government expenditure, the only tyre that seemed to be “inflated”, he said. “But here too, the government’s options are getting limited because of the pressure on the current account deficit and the fiscal deficit,” he added.
Flawed implementation of the Goods and Services Tax regime continues to haunt trade and business, and the adverse effects of demonetisation have been established “beyond doubt”, Chidambaram claimed.
He also pointed out the state of unemployment and farmer distress in the country, and attacked the government for rise in inflation and fuel prices.
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