Chidambaram, Yechury pick holes in Economic Survey claims

The Opposition parties have questioned the claim in the Economic Survey tabled by the Centre in Parliament on Friday that the economy will witness a ‘V-shaped’ recovery. They said the claim and the reality do not match.

Former Finance Minister P Chidambaram said the best decision taken by the government is the decision not to print the Economic Survey. “Once upon a time, the Survey was the vehicle to communicate to the people in simple language the state of the economy and the prospects in the coming year. Now, the Survey has apparently a different purpose, although the purpose is not clear,” he said, and added that it is being used to aid the self-congratulatory conclusion that government implemented “far-sighted policy response for economic recovery”.

Also read: Survey sees economy rebounding to 11% in FY22

Chidambaram said the most frequently used word in the Economic Survey is “regression”. “The current government has taught us the meaning of ‘recession”. When you learn the meaning of ‘recession’ and ‘regression’, you will qualify to be included in the team to write the next Economic Survey,” he said.

He said the farmers, MSMEs and trade unions have rejected the top three ‘structural reforms’ mentioned in the Survey — the three farm laws, the new definition of MSMEs and the four Labour Codes. “What is reform is what the people have rejected. It is the new definition of ‘reform’ and ‘democracy’,” he asked.

He added that though the Survey is “witnessing a V-shaped recovery”, the IMF had said that the Indian economy will reach the pre-Covid level only in 2025.

Chidambaram added that Chapter 2 of the Economic Survey is a tutorial designed for Finance Minister Nirmala Sitharaman. “All the gobbledygook of Chapter 2 can be summarised in three words: ‘Borrow and Spend’ — when faced with a slowing economy. The CEA has rebuked the government for pursuing a tight-fisted fiscal policy. Who is right — the FM or the CEA?,” he asked.

CPI(M) general secretary Sitaram Yechury said the voluminous Economic Survey robs the relevance of such an exercise. “Instead of informing the people about the state of the economy and future direction for recovery, this is self congratulatory based on dubious reasoning. There’s no recognition of the humongous economic recession. Focus is on ‘regression’ which is due to the pandemic.

“It is a propaganda and spin exercise obfuscating disastrous government policies,” he added.

He said the established facts, on the other hand, inform people that the economy was plunging into a recession much before the pandemic struck, mainly due to the twin disasters of demonetisation and GST implementation. “On top came the ill-prepared lockdown destroying the economy,” he said.

Yechury also questioned the claim of a V-shaped recovery. “The Economic Survey says we are in the midst of a V-shaped recovery.

Also read: Survey bullish on 2021-22 GDP; forecasts most robust growth since 1991

“IMF says, at best, the economy will reach pre-pandemic declining growth rates only by 2025. Any recovery that may happen will not be V but K shaped, meaning rich become richer and poor become poorer. This has already begun,” he said.

He maintained that the Narendra Modi Government is only for the rich, who have profited from the misery of every single Indian because of cronyism. “The middle class pays more for petrol and diesel, labour loses its jobs and wages, and farmers fair value for their produce. A couple of rich cronies become wealthier by the minute,” he added.

COMMENT NOW