March 29, 2024 11:41 (IST)
Follow us:
facebook-white sharing button
twitter-white sharing button
instagram-white sharing button
youtube-white sharing button
PM Modi has mastered art of manipulating democracy, hurting Constitution: Mallikarjun Kharge | Mafia-turned-politician Mukhtar Ansari dies of cardiac arrest at 63 | NIA arrests key conspirator in Bengaluru cafe blast case | Actor Govinda returns to politics after 14 years of 'vanvas', joins Eknath Shinde camp | 'To browbeat and bully others is vintage Congress culture': PM posts after 600 lawyers write to CJI
Will messenger of God answer? Chidambaram's swipe at Sitharaman over 'economic mismanagement' in pre-Covid era P Chidambaram
Image Credit: Congress Twitter

Will messenger of God answer? Chidambaram's swipe at Sitharaman over 'economic mismanagement' in pre-Covid era

India Blooms News Service | @indiablooms | 29 Aug 2020, 01:30 pm

New Delhi/IBNS: Senior Congress leader P Chidambaram on Saturday took a swipe at Union Finance Minister Nirmala Sitharaman, who a couple of days ago called Novel Coronavirus pandemic an "act of God" that has affected the Goods and Services Tax (GST).

In a series of tweets, 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?"

After meeting the decision-making body for fixing GST policies, Sitharaman had said, "This year we are facing an extraordinary situation. We are facing an act of God where we may even see a contraction."

The government said it has a shortfall in revenue of Rs. 2.35 lakh crore for the fiscal year 2021.

Sitharaman said the Centre has released over Rs. 1.65 lakh crore as GST compensation to the states for the fiscal year 2020.

Even before Covid-19 had hit India, the country of 1.3 billion people was suffering from an economic slide with Gross Domestic Product (GDP) nosediving in each passing financial quarter.

Related Story: Coronavirus act of God which affected GST collections: Nirmala Sitharaman

One of the options that the GST Council has considered to pay off the dues to the states is by borrowing from the Reserve Bank of India (RBI).

Sitharaman had said, "Two options were placed before the states. We can facilitate through RBI. States have asked to put us both the options in a detailed form today and give them seven working days, after that they will come back.

"It means we can have a small meeting on GST. We will take a call. Two bi-monthly payments are delayed this year. We want only for this year. The GST Council can look into the payments again in April next year." 

Targeting Sitharaman and the central government, Chidambaram tweeted, "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."

"The central government is absolving itself of any financial responsibility. This is a gross betrayal as well as a direct violation of the law," the former Union Finance Minister tweeted.

Chidambaram in an unsparing criticism of the Centre's suggestion to draw money from the RBI said, "The two options given by the Modi government to the States to bridge the GST Compensation gap is a gross violation of the law and an abdication of the responsibility of the central government."

"The latest assault on the States is part of an elaborate design of the Modi government to financially cripple the States and reduce them to beg for money from the Centre."

Suggesting the state governments to reject the Centre's proposal, he added, "States must reject both options and demand, in one voice, that Centre must find the resources and provide the money to the States."

 

Support Our Journalism

We cannot do without you.. your contribution supports unbiased journalism

IBNS is not driven by any ism- not wokeism, not racism, not skewed secularism, not hyper right-wing or left liberal ideals, nor by any hardline religious beliefs or hyper nationalism. We want to serve you good old objective news, as they are. We do not judge or preach. We let people decide for themselves. We only try to present factual and well-sourced news.

Support objective journalism for a small contribution.
Related Images
PM Modi in Bhutan 22 Mar 2024, 06:53 pm
PM Modi in Tamil Nadu 28 Feb 2024, 07:07 pm