Tell government to take fiscal measures: Chidambaram to RBI governor after fresh cut in repo rate

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Tell government to take fiscal measures: Chidambaram to RBI governor after fresh cut in repo rate


NEW DELHI: Senior Congress leader

P Chidambaram

on Saturday asked RBI (Reserve Bank of India)

governor Shaktikanta Das

to “bluntly” tell the government to do its duty and take

fiscal measures

if he feels that the demand has collapsed and the GDP (gross domestic product) growth is heading towards negative territory.

He also asked if the prime minister or the finance minister will laud themselves for the

fiscal stimulus

after the RBI chief’s statement.

“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’,” the former finance minister said in a tweet.

“Even after RBI’s statement, is the PM or

Nirmala Sitharaman

lauding themselves for a package that has fiscal stimulus of less than 1 pc of GDP,” he asked.

Chidambaram had earlier said the fiscal stimulus package announced by the government is “hopelessly inadequate” given the gravity of the economic crisis.

He also trained his guns on the RSS, BJP’s ideological mentor, on Saturday.

“RSS should be ashamed of how the government has dragged the economy into negative growth territory,” he said on Twitter.

Painting a gloomy picture of the economy, the RBI had on Friday said the impact of COVID-19 is

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