Finance Minister Arun Jaitley and BJP quickly stepped in to dismiss Swamy's statement in a bid to douse speculation whether his statement had the backing of anyone in the government or the party.
"Well, the government has full confidence in CEA Arvind Subramanian. His advice to government from time to time has been of great value," the Finance Minister told a media briefing where questions were asked on Swamy's statement.
Attacking Subaramanian, a former IMF economist who was appointed in October 2014 by the NDA government to the post of CEA in the Finance Ministry, Swamy referred to some of his views on Indian economy he had held during his tenure with the multilateral lending institution.
"Who said to US Cong on 13/3/13 the US should act against India to defend US Pharmaceuticals interests? Arvind Subramanian MoF !! Sack him!!!," he tweeted.
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Swamy's attack comes in the wake of reports of Arvind Subramanian being among the probable successors of Rajan as the country's central bank chief.
In a series of tweets attacking the chief economic adviser, who is an NRI, he said, "Now PTs (Patriotic Tweeples) can understand why our core economic sectors could not perform last two years. Trojan horses galore in MoF/Fin Institutions."
"Was AS (Arvind Subramanian) deposing before US Cong Committee against India as a US citizen or Indian? Does any PT know?," he asked.
The Congress exploited Swamy's statement to say that his target was not the CEA but Jaitley and asked whether Prime Minister Narendra Modi is handing over Finance Ministry to Swamy.
Referring to Swamy's attacks on Rajan, Pai said the
government said it supported him but the BJP MP still went after him.
Swamy had earlier launched a scathing attack and demanded the sacking of Rajan accusing him of destroying economy by keeping interest rates high. Then too the government and BJP had disapproved of his comments but Rajan last week announced that he would not seek a second term in the RBI after September when his three year term ends.
Referring to the party's statement distancing itself from Swamy's latest attack, the minister said even the BJP does not concur with Swamy's views. "They have said they do not share Swamy's view," he added.
Jaitley said he would also add one more fact and raised a question.
"From the point of view of discipline of Indian politicians, to what extent should we attack those... discipline and constraints of office prevent them from responding. And this has happened more than once," he said.
As opposition Congress saw Swamy's real target in Jaitley, IT and Telecom Minister Ravi Shankar Prasad responded saying, "integrity of Arun Jaitley is impeccable. His transparency and integrity is unquestionable."
Asked for his comments on Rajan not seeking a second term because the government did not defend him in face of Swamy's attack, Jaitley said, "The premise of the question is incorrect. I had categorically spoken on this subject when the comments were made about the RBI Governor. Even party president had specifically stated that party does not agree with that comment which was made."
Jaitley made the comments when reporters at the scheduled media briefing to announce Cabinet decisions asked about Swamy's remarks against CEA.
Speaking on Swamy's remarks, Urban Development Minister M Venkaiah Naidu said it is an individual's view and not the party's.
"Party has not said anything. Government has not said anything...The question is that you cannot gag everybody in democracy. If party says anything then I can react, if government says anything then I can react on that," he said.
Minister of State for Finance Jayant Sinha also said that the government has full confidence in Arvind Subramanian.