‘Last 2 Years Were A Man-Made Disaster’: Chidambaram on GDP Drop

‘Act of God’ caused GDP drop? ‘Myth’, says former finance minister P Chidambaram.

P Chidambaram in an exclusive conversation with The Quint.

(Photo: The Quint)

Video Editor: Ashutosh Bhardwaj
Video Producer: Hera Khan

India saw the worst GDP drop in history.

India's GDP contraction worst among G20 nations.

Economy faced the worst quarterly slump.

These are some facts related to India's GDP that plunged by 23.9% in the first quarter of FY 2020-21.

While the government claims GDP drop is a result of 'an act of God', former finance minister P Chidambaram busts the myth’ in an exclusive conversation with The Quint.

“We’re not blaming the government for the pandemic. We’re blaming the government for the management of the pandemic. A 23.9% fall in output means it will push millions of people below the poverty line.”

P Chidambaram, Former Finance Minister

'Government Doesn't Have Money Is a Myth'

On being asked that while the government claims it doesn't have enough money, how does he think the government can monetise as per his suggestion, he said:

“Government doesn’t have money is a myth... How did government give a huge bonanza to the corporate sector by cutting corporate tax rate?... Huge amount of money was made by increasing taxes on fuel. Where is that money?”

P Chidambaram, Former Finance Minister

'Last 2 Years Were a Man-Made Disaster'

The Finance Ministry said India is witnessing a sharp V-shaped recovery.

But Chidambaram was far from optimistic. Talking about whether there are chances of recovery, he said:

“Recovery is when we make up the 23.9 and register a positive growth... I can’t see any recovery in 2020-2021... The last 2 years were a man-made disaster.”

P Chidambaram, Former Finance Minister