Former Finance Minister P. Chidambaram Lauds Yashwant Sinha For Talking 'Truth to Power' - Highlights BY: Balbir Singh Sooch

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Is the Cartoon not an Open Notice to the Public and the Politicians-Especially Rulers Now

A. Tweaking the BJP’s original slogan Achhe din aanewale hain (Good days are going to be here), Mr. Chidambaram used another Hindi phrase that people have now started asking: acche din to aaye nahi, yeh burre din kab jaayenge? (Since good days didn’t arrive, when will the bad days leave?).



B. “He also said a revival by the time of the next Lok Sabha election was "highly unlikely" and a "hard landing" appeared inevitable-unavoidable”. PTI: The Tribune, Chandigarh



C. I need to speak up now: Yashwant Sinha writes: The economy is on a downward spiral, is poised for a hard landing. Many in the BJP know it but do not say it out of fear. I shall be failing in my national duty if I did not speak up even now against the mess the finance minister has made of the economy. I am also convinced that what I am going to say reflects the sentiments of a large number of people in the BJP and elsewhere who are not speaking up out of fear. HT



D. Mr. Chidambaram said he agreed with Mr. Sinha’s observation that the economy’s actual growth was 3.7% instead of 5.7% if one took into account the change in the methodology for computing GDP.



E. Mr. Sinha, now part of the BJP’s Marg Darshak Mandal (Group for Guidance), said in an opinion piece that the economy was in the doldrums “as private investment has shrunk as never before in two decades, industrial production has all but collapsed, agriculture is in distress and the construction industry, that is a big employer of the workforce, is in the doldrums.”



F. Asked whether setting up of the Economic Advisory Council would help to improve things, Mr. Chidambaram said: “It is like applying band aid to several broken limbs.”



G. Urging industry to speak out on the economy, Mr. Chidambaram alleged that there was “an atmosphere of fear” that prevented people from speaking out. “Indian industry does not complain.



H. And please note that the methodology for calculation of the GDP was changed by the present government in 2015 as a result of which the growth rate recorded earlier increased statistically by over 200 basis points on an annual basis. So, according to the old method of calculation, the growth rate of 5.7 per cent is actually 3.7 per cent or less.



THE HINDU: FULL TEXT:



“P.Chidambaram Hails Yashwant Sinha’s Take On Economy



1. P.Chidambaram speaks at a press conference in New Delhi on Wednesday.



2. He speaks the truth, says Chidambaram.



3. The Congress endorsed former Finance Minister Yashwant Sinha’s view that the “Indian economy is in a mess” under the Narendra Modi government.



4. “It is not often that the principal Opposition party will welcome a statement of a veteran leader of the ruling party. Today, I warmly applaud the article of Mr. Yashwant Sinha because it speaks the truth about the economy,” former Finance Minister P. Chidambaram said at a a press conference here on Wednesday.



5. Mr. Chidambaram said he agreed with Mr. Sinha’s observation that the economy’s actual growth was 3.7% instead of 5.7% if one took into account the change in the methodology for computing GDP.



6. Accusing the Modi government of being “clueless about what is causing the economic decline,” he said: “It will be a miracle if they can turn it around.”



7. Mr. Sinha, now part of the BJP’s Marg Darshak Mandal (Group for Guidance), said in an opinion piece that the economy was in the doldrums “as private investment has shrunk as never before in two decades, industrial production has all but collapsed, agriculture is in distress and the construction industry, that is a big employer of the workforce, is in the doldrums.”



8. Asked whether setting up of the Economic Advisory Council would help to improve things, Mr. Chidambaram said: “It is like applying band aid to several broken limbs.”



9. Tweaking the BJP’s original slogan Achhe din aanewale hain (Good days are going to be here), Mr. Chidambaram used another Hindi phrase that people have now started asking: acche din to aaye nahi, yeh burre din kab jaayenge? (Since good days didn’t arrive, when will the bad days leave?)



10. Urging industry to speak out on the economy, Mr. Chidambaram alleged that there was “an atmosphere of fear” that prevented people from speaking out. “Indian industry does not complain.



11. They complain to us privately... Indian industry must speak out… Indian industry must, at least, have the courage to speak on matters relating to the economy,” he said.” Courtesy by: THE HINDU



12. “I shall be failing in my national duty if I did not speak up even now against the mess the finance minister has made of the economy. I am also convinced that what I am going to say reflects the sentiments of a large number of people in the BJP and elsewhere who are not speaking up out of fear.



So, what is the picture of the Indian economy today?



13. Private investment has shrunk as never before in two decades, industrial production has all but collapsed, agriculture is in distress, construction industry, a big employer of the work force, is in the doldrums, the rest of the service sector is also in the slow lane, exports have dwindled, sector after sector of the economy is in distress, demonetisation has proved to be an unmitigated economic disaster, a badly conceived and poorly implemented GST has played havoc with businesses and sunk many of them and countless millions have lost their jobs with hardly any new opportunities coming the way of the new entrants to the labour market.



14. And please note that the methodology for calculation of the GDP was changed by the present government in 2015 as a result of which the growth rate recorded earlier increased statistically by over 200 basis points on an annual basis. So, according to the old method of calculation, the growth rate of 5.7 per cent is actually 3.7 per cent or less.



15. Even the SBI, the largest public sector bank of the country, has stated with unusual frankness that the slowdown is not transient or “technical”, it is here to stay and the slowdown in demand has only aggravated the situation. It has openly contradicted what the BJP president said just a few days ago that the slowdown in the last quarter was on account of “technical” reasons and will be corrected soon. According to the SBI chairman, the telecom sector is the latest entrant to the long list of stressed sectors.



16. The reasons for this decline are not far to seek nor have they appeared suddenly.



17. They have been allowed to accumulate over time to cause the present crisis. It was not difficult to anticipate them and take counter measures to deal with them.



18. But that called for devoting time to the task, serious application of mind, understanding of the issues and then working out a game plan to tackle them. It was perhaps too much to expect from a person who was carrying the heavy burden of so many extra responsibilities. The results are there for all of us to see.



19. A meeting convened by the prime minister with the finance minister and his officials appears to have been postponed indefinitely. The finance minister has promised a package to revive growth. We are all waiting with bated breath for this package. It has not come so far. The only new thing is the reconstituted Economic Advisory Council of the prime minister. Like the five Pandavas they are expected to win the new Mahabharat war for us.



20. The performance of the monsoon this year has not been flattering. This will further intensify rural distress.



21. The farmers have received “massive” loan waivers from some state governments varying from one paise to a few rupees in some cases.



22. Forty leading companies of the country are already facing bankruptcy proceedings. Many more are likely to follow suit. The SME sector is suffering from an unprecedented existential crisis.



23. The input tax credit demand under the GST is a whopping Rs 65,000 crore against a collection of Rs 95,000 crore. The government has asked the income tax department to chase those who have made large claims.



24. Cash flow problems have already arisen for many companies especially in the SME sector. But this is the style of functioning of the finance ministry now. We protested against raid raj when we were in opposition. Today it has become the order of the day. Post demonetisation, the income tax department has been charged with the responsibility of investigating lakhs of cases involving the fate of millions of people. The Enforcement Directorate and the CBI also have their plates full. Instilling fear in the minds of the people is the name of the new game.



25. Economies are destroyed more easily than they are built.



26. So, a revival by the time of the next Lok Sabha election appears highly unlikely. A hard landing appears inevitable. Bluff and bluster is fine for the hustings, it evaporates in the face of reality”. Courtesy by The Indian EXPRESS



27. “Why small businessmen in Gujarat are quitting industry and turning to financial speculation: Returns are collapsing for micro, small and medium industrial units.


28. “They will want to make money at the end of their trades,” said a sociologist who did not want to be identified. “And all the bets are not going to pay out. And they do not have the bandwidth to lose money.”

29. MS Sriram, who teaches at IIM Bangalore’s Centre for Public Policy, cautioned: “If people are moving out of the primary sectors to the financial services sector, it is a cause for concern. Financial services come in only when there is enough production and economic activity.” Courtesy by :scroll

30.“Many BJP leaders are attacking the finance minister every day, but there is a convenient silence around the prime minister’s role in the economic decisions and he, who asking to sign dotted lines…” Courtesy by the wire

Posted on Sep 29, 17 | 12:53 am