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Modi government failed in fiscal consolidation test: Chidambaram (Lead)
Kolkata, Feb 26 (IANS) The Narendra Modi government failed on the test of fiscal consolidation and the people of this country will pay the price for it, former Union Finance Minister P. Chidambaram said on Monday.
“Starting from 4.5 per cent, the present government should have brought down fiscal deficit to three per cent in 2016-17. They twice postponed it and they said they would do in 2017-18. Last year they said they would do in 2018-19.
“In 2017-18, the fiscal deficit is supposed to be 3.2 per cent, but in the budget he (Finance Minister Arun Jaitley) has done 3.5 per cent. Next year, it should have been 3 per cent but he said he would do 3.3 per cent. On the test of fiscal consolidation, the government has failed,” he said.
“From 4.5 per cent to 3.3 per cent of fiscal deficit, it is a reduction of 1.2 per cent in five years,” Chidambaram said, adding that when the UPA government left office, it had brought down the fiscal deficit from 5.9 per cent to 4.5 per cent — a reduction of 1.4 per cent in two years.
The UPA government had also brought down revenue deficit to 3.2 per cent and current account deficit 1.7 per cent, he said at an interactive session organised by the Bharat Chamber of Commerce.
“We achieved reasonable fiscal consolidation,” he said, noting that fiscal stability is the base on which any economic policy can be constructed and without fiscal stability and nothing can be achieved in any country.
Out of 3.5 per cent of fiscal deficit in the current year, revenue deficit was 2.6 per cent, he said, adding that the government is borrowing for revenue expenditure, not for capital investment.
Explaining on the budgetary numbers, he said the nominal GDP growth was 10.5 per cent and gross tax revenue increased by 13.42 per cent in 2017-18.
For 2018-19, the nominal growth is projected at 11.5 per cent but gross tax revenue is supposed to jump from 13.4 per cent to 16.7 per cent.
“How does an additional one per cent in nominal GDP growth give you revenue buoyancy of about 3.3 per cent? This is a question the economists are asking. But there is no answer,” he asked.
The breaking down of tax revenue numbers showed the corporation tax is supposed to grow by 10.1 per cent, income tax to grow by 20 per cent and GST (Goods and Services Tax) is supposed to go up by a whopping 67 per cent, Chidambaram said.
“The current year, you (the government) took a hit on GST… The GST network is still wobbly, the e-way bill has been postponed, people are still complaining about filing too many returns… The GST is still a problem child.
“How do you project the GST revenues will go up by 67 per cent especially when you are bringing down the rates on the high value items? Therefore, the revenue numbers are suspect,” he said.
Farmers and youth of the country are “in distress” as the government has failed to provide relief to the stressed agriculture sector and to create jobs for youth, said the Congress leader.
–IANS
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Dr. Abhishek Verma Dedicates a Shelter in Memory of His Mother, Veena Verma, at KGMU; Inaugurated by Daughter Nicolle Verma
World-renowned business tycoon Dr. Abhishek Verma has supported Foodman Vishal Singh’s Hunger-Free World mission. In memory of his mother, Late Veena Verma, who was a 3 term Rajya Sabha MP.
Dr. Verma dedicated a state-of-the-art free permanent shelter for the attendants of patients at KGMU Medical University, Lucknow, under the aegis of Vijay Shree Foundation. His daughter, Nicolle Verma, inaugurated the shelter.
During the event, Foodman Vishal Singh honored Nicolle Verma by presenting her with a memento. Mrs. Nidhi Sharma and Avantika Yadav, associated with the organization, welcomed her with garlands. Following this, Nicolle Verma distributed essential items to the attendants and also handed out fruits. She became emotional remembering her grandmother on her birth anniversary.
On this occasion, she also inaugurated the “Veena Verma Sevalaya” in memory of her grandmother, Veena Verma, to serve the attendants. She expressed, “I feel proud that my family is engaged in nation-building as well as social service. Today, in collaboration with Vijay Shree Foundation founder Foodman Vishal Singh Ji, I feel immensely proud to dedicate this shelter for the poor, helpless, and needy attendants of patients battling serious illnesses like cancer. I am honored to be associated with the Hunger-Free World Mission for humanity.”
Inspired by the continuous humanitarian service provided by Vijay Shree Foundation over the past 17 years, Nicolle Verma donated 10 lakh rupees to support the cause. The purpose of this donation is to ensure that services continue for the needy attendants of patients suffering from severe illnesses in hospitals, as facilitated by Foodman Vishal Singh.
It is noteworthy that Dr. Abhishek Verma’s family has a legacy of public and philanthropic service. They are helping millions to carry forward the values and service work of their parents. On the occasion of his mother’s birth anniversary, Dr. Abhishek Verma dedicated this state-of-the-art permanent shelter at Lucknow Medical College to serve the attendants of patients through the Vijay Shree Foundation.
Supporting Foodman Vishal Singh’s Hunger-Free World mission, Dr. Abhishek Verma assured that he would continually support keeping this flame of humanity alive. He also promised to assist in providing medicines to the helpless patients.
Continuing her grandmother’s legacy of service, Nicolle Verma personally served food to the needy patients and attendants. She said, “It is our good fortune to have received the joy of doing this noble work today through Foodman Vishal Singh. I have taken another step forward in carrying my family’s values and cooperation by joining hands with the Vijay Shree Foundation. My father taught me to serve and help the needy, and I feel happy when I bring a smile to someone’s face.”
On the birth anniversary of the late Veena Verma, the event organizer, Vijay Shree Foundation founder Foodman Vishal Singh, said, “We feel proud and happy that Dr. Abhishek Verma, a globally renowned business tycoon, has extended his support to uplift our country from the hunger index. Today, on his mother’s birth anniversary, he inaugurated a state-of-the-art permanent shelter at Lucknow Medical College, which will always be helpful for the needy attendants of patients. It is a pleasure for me and the organization to receive the affection of Mr. Verma.”
The event was attended by General Manager Verma Family Office Hemant Garg, Sonu Rajput, and the organization’s volunteers, including Sandeep Singh, Parmeshwar Ji, Prashant Rao Gautam, Balram Singh, Ramesh Chaudhary, Suman, Jeetu, Anil, Suraj, Vinay, Manish Bhadauria, Manas Mehrotra, Vivek, Apurv, Happy, and others.
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