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Country's economy in shambles, FDI in Maha falling: Chavan

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Press Trust of India Mumbai
Last Updated : Sep 10 2019 | 7:00 PM IST

Senior Congress leader and former Maharashtra chief minister Prithviraj Chavan on Tuesday hit out at the Narendra Modi government for the economic slowdown and questioned the Centre's roadmap to make India a USD 5 trillion economy.

He also said the Centre should reduce GST to provide relief to the automobile sector which is grappling with record levels of unsold inventory.

Addressing a press conference here, Chavan said the Congress-led UPA government had provided buses to civic bodies under Jawaharlal Nehru National Urban Renewal Mission, a city modernisation scheme, during recession to help the auto industry.

He said GST on construction should also be reduced, but added that the government needed to refrain from tampering GST rates while elections are round the corner in Maharashtra.

Alleging bank scams worth Rs 71,543 crore, Chavan claimed 90 per cent of irregularities were in nationalised banks, and asked how mergers of banks, as announced by the Union Finance ministry recently, would help.

Speaking on the Reserve Bank of India transferring dividend and surplus of Rs 1.76 lakh crore to the Union government, Chavan said the money should be used for bank recapitalisation.

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"Unfortunately the government is not forthcoming on where it will utilise the funds," he added.

Details of banks frauds should be made public and accountability fixed, Chavan further said.

Hitting out at the BJP-led Maharashtra government, Chavan said it was not doing enough to bring foreign direct investment into the state, and asked the Devendra Fadnavis dispensation to provide district-wise figures of FDI inflow since 2014.

Speaking about the Modi government's ambitious plans to get the country's economy to the USD 5 trillion mark by 2025, Chavan said knowing the size of an economy was not enough to gauge its health.

"You need to know the GDP (Gross Domestic Product) growth rate and the current capita income," he claimed.

"I challenge the Centre and Maharashtra government to provide correct figures. Our economy is in shambles due to the policies of the Modi government. It has been misleading the youth and farmers," Chavan said.

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First Published: Sep 10 2019 | 7:00 PM IST

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