Chidambaram sees projected 5% growth rate as ‘exaggerated and puffery’

Advanced estimates tell ‘a story of neglect and mismanagement,’ says former Union Finance Minister

P. Chidambaram. | File

Former Union Finance Minister P. Chidambaram on Wednesday claimed that the projected growth rate of 5% for 2019-20 was ‘exaggerated and puffery’ and asserted that the advanced estimates of National Income told ‘a story of neglect and mismanagement’.

In a series of tweets, he explained why he doubted the government’s claim of 5% growth rate.

“The projected annual growth of 5 per cent is exaggerated and puffery. The growth in the first half was 4.75 per cent. It is difficult to believe that growth in the second half will be 5.25 per cent,” he said.

“The Advanced Estimates of National Income 2019-20 released yesterday tells the story of neglect and mismanagement of the economy by the BJP government,” he said in another tweet.

Mr. Chidambaram held that the key employment generating sectors such as agriculture, mining, manufacturing and construction would grow not more than 3.2% and way below the projected rate.

“The boast of the government that millions of jobs are being created is a big lie,” he said.

The senior Congress leader concluded that “business persons are loath to invest in India” by pointing out that “the Gross Fixed Capital Formation at current prices 2019-20 will be 28.1 per cent, one of the lowest in recent years and a sharp fall from the peak”.

“Per capita GDP will grow at 4.3 per cent. This is the average and means that the vast majority of Indians will see little or no growth in their income and quality of life,” he added.