PC’s poser to RBI on liquidity push
NEW DELHI: 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.”
Meanwhile, Finance Minister Nirmala Sitharaman on Saturday attacked the critics of the centre’s Rs. 20 lakh crore economic package and said the the intent is not to understand but to pick holes.
She said, “We compared announcements made by other countries. We should not be confused about this. Every country has brought in a basket of things, some fiscal, some monetary...They have also gone into liquidity being infused. We are not different form them. The proportion might vary. We have come with measures which will get more liquidity into the market. People will get money in hand and kickstart demand”.