RBI should bluntly ask Govt to take fiscal measures: Chidambaram
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RBI should bluntly ask Govt to take fiscal measures: Chidambaram

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New Delhi, May 23 : A day after the Reserve Bank of India said GDP could contract further this year, Congress leader and former finance Minister P Chidambaram on Saturday said the RBI should bluntly tell the government to take fiscal measures to protect the economy.

In a series of tweets, Chidambaram said that even after the RBI statement, Prime Minister Narendra Modi and Finance Minister Nirmala Sitharaman were lauding themselves on the Rs 20 lakh crore relief package that has fiscal stimulus of less than 1 percent of GDP. 'Even after RBI’s statement, is the PMO India or N Sitharaman lauding themselves for a package that has fiscal stimulus of less than 1 percent of GDP? RSS should be ashamed of how the government has dragged the economy into negative growth territory.

Governor Shaktikanta Das says demand has collapsed, growth in 2020-21 headed toward negative territory. Why is he then infusing more liquidity? He should bluntly tell the government ‘Do your duty, take fiscal measures,' Mr Chidambaram said. The former Finance Minister's comments came a day after the RBI said GDP could contract further than it has this year and is estimated to remain in negative territory in the next. (UNI)

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