Sitharaman said Thursday that the economy has been affected by the pandemic, which is an “act of God”, and will see a contraction in the current fiscal.
Taking a hit at Sitharaman over the comments, 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 it hit. the pandemic. India? ”
“Will FM respond as a Messenger of God?” asked the former finance minister.
Chidambaram also criticized the Center for asking states to borrow more to make up for lost revenue due to outstanding GST fees.
He stated that the two options given by the Modi government to the states to close the GST compensation gap are unacceptable.
“Under the first option, states are asked to borrow by committing their future accounts receivable under the offsetting cease. The financial burden falls entirely on the states,” Chidambaram said.
“Under the second option, the states are asked to borrow from the RBI window. It is more of a market loan, just under a different name. Again, the entire financial burden falls on the states,” he said in a series of tweets.
Chidambaram stated that the central government is exempting itself from any financial responsibility.
It is a “grave treason” as well as a “direct violation of the law”, he alleged.
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