Chidambaram calls Sitharaman ‘Messenger of God’, after FM’s ‘Act of God’ comment

By: |
August 29, 2020 10:54 AM

Sitharaman on Thursday had said the economy has been hit by the pandemic, which is an 'Act of God', and it will see a contraction in the current fiscal.

Chidambaram claimed that the central government is absolving itself of any financial responsibility.Chidambaram claimed that the central government is absolving itself of any financial responsibility.

Senior Congress leader P Chidambaram on Saturday took a dig at Finance Minister Nirmala Sitharaman over her ‘Act of God’ remarks on the economy, saying will “the FM as the Messenger of God” answer how should the “mismanagement” of the economy before the coronavirus pandemic be described.

Sitharaman on Thursday had said the economy has been hit by the pandemic, which is an ‘Act of God’, and it will see a contraction in the current fiscal.

Taking a swipe at Sitharaman over the remarks, Chidambaram said, “If the pandemic is an ‘Act of God’, how do we describe the mismanagement of the economy during 2017-18, 2018-19 and 2019-20. Before the pandemic struck India?”

“Will the FM as the Messenger of God please answer?” the former finance minister asked.

Chidambaram also slammed the Centre for asking states to borrow more to make up for revenue losses due to pending GST dues.

He asserted that the two options given by the Modi government to the states to bridge the GST compensation gap are unacceptable.

“Under the first option the states are asked to borrow by pledging their future receivables under Compensation cess. The financial burden falls entirely on the states,” Chidambaram said.

“Under the second option, states are asked to borrow from the RBI window. It is more market borrowing, only by a different name. Again, the entire financial burden falls on the states,” he said in a series of tweets.

Chidambaram claimed that the central government is absolving itself of any financial responsibility.

This is a “gross betrayal” as well as a “direct violation of the law”, he alleged.

Do you know What is Cash Reserve Ratio (CRR), Finance Bill, Fiscal Policy in India, Expenditure Budget, Customs Duty? FE Knowledge Desk explains each of these and more in detail at Financial Express Explained. Also get Live BSE/NSE Stock Prices, latest NAV of Mutual Funds, Best equity funds, Top Gainers, Top Losers on Financial Express. Don’t forget to try our free Income Tax Calculator tool.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1India to see double digit growth: KV Kamath
2Covid-19 blues: S&P says India’s debt level to exceed 90% of GDP in FY21
3NSO data: 4,969 subscribers joined NPS in July against monthly average of 9,213 in FY19 and 9,904 in FY20