‘Indian Economy is a Car On 3 Flat Tyres,’ Says P Chidambaram

“Private investment, private consumption, exports and government expenditures are like four wheels of a car.”

Former Finance Minister P Chidambaram.

(Photo: ANI Screengrab)

Video Editor: Vishal Kumar

Days after the Narendra Modi government completed four years in power, former finance minister P Chidambaram attacked the central government over rising fuel prices, declining economy, lack of jobs and no ‘acche din’.

They are squeezing you. They are damaging you. They are picking your pockets. Every day when you fill your car or two-wheeler with petrol or diesel, you are only paying for the govt’s expenditure. There is no reason why petrol or diesel in India today should cost more than what it cost in May 2014. This govt is a one-trick pony. It knows only one trick. It will tax petrol, diesel, LPG and CNG. It will squeeze you and then spend that money. It’s the only way the govt can keep the economy running. It has no other ideas.

P Chidambaram, former finance minister

Chidambaram said that the government is incompetent in addressing the economic issues, which has "worsened" under the current dispensation.

There are four engines of growth – private investment, private consumption, exports and government expenditures. They are like four wheels of a car. A car runs on all four tyres. All four tyres must be properly inflated. If one tyre is punctured, it will move for a little while. If two tyres are punctured, I don’t see the car running. If three tyres are punctured, can the car run? India’s economy today is a car running on three punctured tyres.

P Chidambaram, Former finance minister

Chidambaram also criticised the government for introducing a "five-slab" Goods and Services Tax (GST) regime. “The GST is a mockery of the GST. I told them don't call it GST and give it a bad name. Call it by any other name – call it BJP tax. The world over, it is a simple tax with a single rate applicable across the board. In a few countries, it has a dual rate. In India, if you can't have a single rate, you can have a dual rate. But how can you have eight rates,” he questioned.

The economy grew from 6.3 percent to 7.5 percent to 8.2 percent. Then demonetisation hits and it comes down to 7.1 percent. The govt said that the worst is over and we will go back to 8 percent. The results came three days ago. From 7.1 percent, it has come down to 6.5 percent. So it’s exactly where we started. After four years of Modi govt, we have a declined economy. The UPA bequeathed to the NDA a rising economy. The NDA will leave next year with a declining economy. I am worried about the decline but I am glad that this govt will leave next year.

P Chidambaram, former finance minister

Accusing the Narendra Modi govt of damaging the economy, the former finance minister attacked demonetisation for “destroying small and medium industries and jobs in the unorganised sector and virtually crippling the construction industry”.

Chidambaram also took a jibe at ‘acche din’.

In the advertisements, Modi does not talk about ‘Acche Din’ anymore. They no longer talk about ‘Acche Din’. ‘Acche Din’ is gone now. They know ‘Acche Din’ will never come. They are now talking about Sabka Saath, Sabka Vikas. From ‘Acche Din’, it has come down to this. 

P Chidambaram, former finance minister

(Text: PTI)