P Chidambaram said, “Before the economy could recover from demonitisation, we had this ‘great GST’.”(File photo) P Chidambaram said, “Before the economy could recover from demonitisation, we had this ‘great GST’.”(File photo)

Senior Congress leader and former finance minister P Chidambaram on Saturday questioned why the government was introducing its Rs 6 lakh crore Bharatmala programme and the process of bank recapitalisation if it believes the economy is strong. He added that demonetisation and the Goods and Services Tax (GST) have destroyed the economy, which has slowed down terribly since 2014.

“Indian economy grew 8.5 per cent between 2004 and 2009, which is the best ever rate in India so far. But it has slowed down terribly since 2014,” Chidambaram said. “Finance Minister says macroeconomics are strong. If the economy is strong, why announce 6 lakh crore Bharatmala programme? Why bank recapitalisation?” he asked.

In yet another attack at the Narendra Modi-led Bhartiya Janata Party (BJP) government, Chidambaram said, “The economy has slowed down because of demonetisation. But there’s nothing like black money or white money. The colour of notes are not black. It’s the same as old ones.” He added, “None of the objectives of demonetisation has been achieved. They couldn’t catch any black money.”

“Demonetisation has destroyed small and medium businesses so new jobs are not being created. Big business don’t create many jobs, it is the small and medium businesses which do it,” the former finance minister added.

Slamming the government for passing the GST Bill, the Congress leader said, “Before the economy could recover from demonetisation, the country had this “great GST”. “There are multiple rate slabs in this GST. This is not GST. Please call it by some other name.”

“Economy is at inflection point. If you take right steeps, it will go up but will go down if wrong steps are taken. The growth rate must not go down below 5.7 per cent. India doesn’t deserve growth rate less than this. And I have faith there are people in this country who can take right steps and there will be future a govt will do it,” said Chidambaram.

“There does exist shadow economy in India. But it’s there in other countries also. In India, it is around 12 per cent. The answer to shadow economy is better taxation system, not demonetisation. We can’t burn our house if there’s a mosquito inside it, ” he said.

Saying that he supports digital payment, Chidambaram also said that high value transitions should be digital but we should not force grocer to accept card payment. “Value of digital transaction in Nov 2016 was 94 lakh crore, it was same in June 2017 also.”

Praising the Value Added Tax (VAT) which was introduced during the Congress rule, Chidambaram said, “We rolled out VAT in 2005-06 but there was no protest in country because we worked very hard in preparing it.”

“Small industry shouldn’t require to register, medium must register but should’ve right of self-certification.”

Chidambaram said, “GST stands for Gabbar Singh Tax, the rate must not be more than 18 per cent in any circumstance. People now say GST is bad idea. But GST is not a bad idea. The GST law is a bad law.”

Talking about the Bullet train project which was launched last month by PM Modi in the presence of Japanese Prime Minister Shinzo Abe in Ahmedabad, Chidambaram said, “Bullet train is a case of misplaced priorities. Instead of spending Rs 1 lakh crore on it, why not give Rs 1 crore each to schools. Our priority is education, health, jobs.”

He said, “How many people will travel in a bullet train? Everybody should be treated equally. A political party should not talk to one community in loud voice and in meek voice to other.”

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