‘Country is in a financial crisis’

ST CORRESPONDENT
Tuesday, 13 November 2018

“Government had two motives while carrying out demonetisation: one was to stop black money and corruption and other was to stop  terrorism by cutting down financial support to terrorism. However, both were not solved, Not only Reserve Bank of India, but IMF has also mentioned how demonetisation and GST shocked Indian economy and it is still reviving. Modi government was expecting Rs 3 to 4 lakh crore to return. However, it has not happened,” he stated.

Pune: Country is going through a financial crisis due to the whims and fancies of Prime Minister Narendra Modi, said former chief minister of Maharashtra Prithviraj Chavan. He was in the city on Monday to interact with media following the completion of the two years of demonetisation introduced by BJP government.

While addressing the media, Chavan explained how BJP government’s demonetisation, GST (Goods and Services Tax) have hampered common man’s life as well as county’s financial condition.

“We are facing heat of demonetisation since last two years. Congress had cautiously welcomed the decision. We knew that it is not a good one. After few days, we came to know that there was no ground work done by the government. 125 people died due to demonetisation. Government had two motives while carrying out demonetisation: one was to stop black money and corruption and other was to stop  terrorism by cutting down financial support to terrorism. However, both were not solved,” he said, adding, “On the other hand, people converted black money into white. Demonetisation was the largest money laundering operation in the world.”

“Not only Reserve Bank of India, but International Monetary Fund (IMF) has also mentioned how demonetisation and GST shocked Indian economy and it is still reviving. Modi government was expecting Rs 3 to 4 lakh crore to return. However, it has not happened. People invested in real estate, gold and other business,” he stated.

He further added, “Fiscal deficit is increasing. Government had no choice but to get loans to run the economy.  Government has also taxed fuel to decrease fiscal deficit. From last four and half years, Government had collected Rs 21 lakh crore revenue from increasing fuel taxes. Government knew that people are suffering from fuel price hike. But, they cannot do anything due to financial crisis. If they decrease fuel taxes, government will collapse.”

Emphasising on financial crisis issue, he pointed out, “Now, government wants contingency fund from Reserve Bank of India (RBI) using Section 7 of RBI Act. Congress did not use Section 7 even in the 1991 Indian economic crisis situation.”

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