RBI should bluntly tell govt to take fiscal measures: Chidambaram

Congress leader slams govt following central bank’s statement that growth is headed towards negative territory

P. Chidambaram

Congress leader P. Chidambaram on Saturday hit out at the government following the

Reserve Bank of India’s statement that growth in 2020-21 is headed towards negative territory.

In a series of tweets, Mr. Chidambaram questioned RBI Governor Shaktikanta Das on why, knowing well that demand had collapsed, the apex bank was “infusing more liquidity”.

“He should bluntly tell the government ‘Do your duty, take fiscal measures’,” Mr. Chidambaram tweeted. In a jibe at the government, he asked if, after the RBI statement, the government would still laud itself for a “package that has fiscal stimulus of less than 1% of GDP?”

“RSS should be ashamed of how the government has dragged the economy into negative growth territory,” he said.

The critical economic parameters were in the red even before the country went into a lockdown on March 25, the Congress has claimed. Excessive supply side measures and very few demand-driven initiatives had completely derailed the economy, the party has maintained.