A story of missed opportunities: Chidambaram

The government’s lack of an economic vision meant it had no proper policies and, therefore, no proper programmes.

May 26, 2015 12:22 am | Updated 12:22 am IST - NEW DELHI:

Prime Minister Narendra Modi’s first year in office is a story of “missed opportunities,” former Finance Minister P. Chidambaram said on Monday. Notwithstanding the majority the BJP won, it had failed both to create jobs and carry out major reforms, he said. The government’s lack of an economic vision meant it had no proper policies and, therefore, no proper programmes.

A day ahead of the Modi government’s first anniversary in power, Mr. Chidambaram, addressing a press conference at the AICC headquarters here, said investment would not come in till the ruling dispensation addressed low credit growth, sluggish aggregate demand, stalled projects and poor performance in the core sector.

“When the credit growth is lowest in many years, aggregate demand is sluggish, 585 private sector projects are stalled, how will an investor come in?” he said. “In terms of jobs, I will give this government zero.” Farmers in general and agriculture experts like Ashok Gulati, too, would give this government a zero rating. “If you ask a big industrialist who was promised Rs. 5,000 crore from the State Bank of India, he will of course give the government 10 out of 10,” he said in a veiled reference to industrialist Gautam Adani — a Modi favourite.

Major reforms measures — the Direct Taxes Code, the Public Debt Management Agency (PDMA), and the legislative proposals of Financial Sector Legislation Reforms Commission — had all been put on the backburner. “These are absolutely necessary,” Mr. Chidambaram said. “Why have all these been put on the backburner when you have 282 members in the Lok Sabha?”

Accusing the government of not passing on the benefits of the fall in international crude oil prices to consumers, he said had it done so petrol and diesel should have been selling at at least Rs.15 less per litre. He said the government had made a windfall of about Rs. 50,000 crore.

Taking a swipe at Finance Minister Arun Jaitley, he said the phrase “tax terrorism” coined by him had “come to haunt him” with tax notices being sent to FIIs regarding Minimum Alternate Tax.

Mr. Chidambaram also said the Vodafone tax dispute could have been resolved by this government by merely inserting a clause in the Finance Bill, a money Bill, which did not require support from the Rajya Sabha.

Referring to the spate of surveys on the Modi government’s first year, Mr. Chidambaram said: “All surveys show that the level of support he enjoyed in May 2014 has declined sharply by May 2015. Why? People are beginning to recognise that the promise of ‘acche din’ [good days] was only a ‘chunavi jumla’ [an election gimmick].”

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