Economic survey: Chidambaram says Modi govt appears to be ‘pessimistic’ about economyhttps://indianexpress.com/article/business/economy/ex-finance-min-chidambaram-calls-govt-pessimistic-after-release-of-economic-survey-2019-5815031/

Economic survey: Chidambaram says Modi govt appears to be ‘pessimistic’ about economy

The Economic Survey 2019, tabled a day ahead of the Union Budget, has projected a seven per cent GDP growth for the financial year 2019-2020.

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Former finance minister P Chidambaram, “It appears to me that the government, speaking through the Economic Survey, is pessimistic about the economy.”

Hours after Nirmala Sitharaman tabled the Economic Survey 2018-19 in Parliament, former finance minister P Chidambaram and senior Congress leader Thursday said there are no sector-wise growth projections in the survey and that the government itself appears to be pessimistic about the economy.

“It appears to me that the government, speaking through the Economic Survey, is pessimistic about the economy,” Chidambaram said.

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Commenting on the new Economic Survey, Chidambaram said, “I looked for the Outlook for 2019-20. It is in Volume-2, Chapter 01, but there is only a bland statement that growth of the economy expected to be 7 per cent in 2019-20. There are no growth projections sector wise.”

“The Economic Survey 2018-19 is the first of the new government and the first under the new Finance Minister, Ms Nirmala Sitharaman. The first sentence of Volume-1, Chapter 01 is self-congratulatory (“During the last five years, India’s economy has performed well.”). I looked for the Outlook for 2019-20. It is in Volume-2, Chapter 01, but there is only a bland statement that “growth of the economy expected to be 7 per cent in 2019-20. There are no growth projections sector wise,” he said.

The Economic Survey, tabled a day ahead of the Union Budget, has projected a seven per cent GDP growth for the financial year 2019-2020.

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The Congress leader further said that the closest in terms of describing the outlook for 2019-20 was found in Volume-2, Chapter 02, which flagged slowing growth, shortfall in revenue, finding resources without compromising the fiscal deficit target, impact of oil prices on the current account and recommendations of the Fifteenth Finance Commission on central government finances.

“I am afraid, none of these is positive or encouraging,” he added.