In a collection of tweets, Chidambaram stated, “RBI Governor says demand has collapsed, growth in 2020-21 headed toward negative territory. Why is he then infusing more liquidity?”
The former minister in his subsequent tweet additionally stated that Shaktikanta Das ought to bluntly inform the federal government — “Do your duty, take fiscal measures.”
“Even after RBI’s statement, is the Government or Finance Minister (Nirmala Sitharaman) lauding themselves for a package that has fiscal stimulus of less than 1 per cent of gross domestic product (GDP)?” he stated.
Slamming the Rashtiya Swayamsewak Sangh (RSS), Chidambaram stated, “RSS should be ashamed of how the government has dragged the economy into negative growth territory.”
His remarks got here a day after the RBI delivered an emergency fee lower for the second time in as many months on Friday because it judged that the Covid-19 pandemic poses a grave risk to the nation and can result in the primary financial contraction in 40 years.
Das on Friday introduced a 40 foundation factors (bps) lower in repo and reverse repo charges, whereas markedly pivoting the central financial institution’s focus from inflation management to fostering progress. Das pledged to take no matter “measures are necessary” to satisfy the challenges posed by the pandemic.
He additionally stated that India’s GDP progress fee for the monetary yr 2020-21 is more likely to be within the destructive territory.