Indian economy like a car with 3 tyres punctured ,says P Chidambaram

Indian economy like a car with 3 tyres punctured ,says P Chidambaram

Former Finance Minister P Chidambaram on Sunday said that Indian economy has become like a car whose three tyres are punctured.

He said, “Private investment, private consumption, exports and government expenditures are the four growth engines of economy. It’s like a four tyres of a car. If one or two tyres are punctured, it will slow down but in our case, three tyres are punctured,” he said at a public event .

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“Only government expenditure is going on, in the form of health care and some amenities. To keep this expenditure going on, government has continued taxing petrol, diesel and even LPG. It is squeezing money from people in such taxes and spending some from it on public amenities,” he added.

Did you see any investment in the power sector recently or any investment coming in some thousand crore industry, he asked.

“For example, out of 10 major companies that went into insolvency, five were steel companies. How can you expect any investment in such sectors,” he wondered.
The former finance minister lambasted the government for introducing a five-slab Goods and Services Tax (GST) regime.

“Post demonetisation this government has introduced GST with five tax slabs with cess over it. In other countries, GST is just one tax system but we can have two types of taxation in India. Still, having five slabs is not what we have imagined about GST,” said Chidambaram.