Economy cause of major concern, time to rethink policies: P Chidambaram

While sharing Chintan Shivir discussion details, former Union finance minister P Chidambaram said the nation’s economy is a cause of major concern and it is time to reset the policies.

Former Union finance minister P Chidambaram said the country’s economy is a major cause of concern and it is about time to reset the economic policies.

Chidambaram, who heads the panel on economy constituted by Congress president Sonia Gandhi at the party’s three-day Chintan Shivir being organised in Rajasthan’s Udaipur, was speaking at a press meet.

Sharing the minutes of the discussion, the former finance minister said a slower rate of growth has been the hallmark of the present government in the last 8 years, adding that the post-pandemic recovery has been indifferent and halting.

Chidambaram along with nine others are steering the discussion on the economy at the shivir. Their group has 60 members.On Friday, around 37 members expressed their views for over 4 hours during the event where over 400 Congressmen and women are taking part.

Chidambaram said the discussions will continue till Sunday. Speaking on inflation, he said it has risen to unacceptable levels and threatens to rise further. The country’s wholesale price index (WPI) is at 14.55 per cent and the consumer price index (CPI) is at 7.79 per cent. The former union minister said the government is fueling the rise of inflation by its wrong policies, especially through high taxes on petrol and diesel, high administered prices, and high goods and services tax rates.

Highlighting the issue of unemployment, he said the Labour Force Participation Rate (LFPR) is at a historic low of 40.38 per cent and the unemployment rate stands at 7.83 per cent.

He reiterated the charge that social services expenditure as a proportion of total expenditure has fallen to an average of 5 per cent (in 8 years) from an average of 9 per cent in the 10 years between 2004 and 2014.He said the external situation has added to the pressures on the economy. The senior Congress leader said, “The government appears clueless about the ways to deal with these developments.”