Nirmla Sitaraman on Thursday had said the economy has been hit by the pandemic, which is an ‘Act of God’, and it will see a contraction in the current fiscal.
Taking a swipe at Sitharaman over the remarks, Former Finance Minsiter and Congress Senior leader P.Chidambaram said, “If the pandemic is an ‘Act of God’, how do we describe the mismanagement of the economy during 2017-18, 2018-19 and 2019-20. Before the pandemic struck India?”
“Will the FM as the Messenger of God please answer?” the former finance minister sarcastically asked.
Chidambaram also slammed the BJP Centre for asking states to borrow more to make up for revenue losses due to pending GST dues.
He asserted that the two options given by the Modi government to the states to bridge the GST compensation gap are unacceptable.
“Under the first option the states are asked to borrow by pledging their future receivables under Compensation cess. The financial burden falls entirely on the states,” Chidambaram said.
“Under the second option, states are asked to borrow from the RBI window. It is more market borrowing, only by a different name. Again, the entire financial burden falls on the states,” he said in a series of tweets.
Chidambaram claimed that the central government is absolving itself of any financial responsibility. This is a “gross betrayal” as well as a “direct violation of the law”, he alleged.