BJP leader Amit Malviya hit out at Congress leader and former Finance Minister P Chidambaram for “lecturing” the BJP-led Central government on “institutional integrity” when he himself “pressed the RBI to paint a rosier picture of the economy”.
According to a Moneycontrol report, former RBI Governor D Subbarao, in his book ‘Just A Mercenary?: Notes from My Life and Career’, said P Chidambaram, who was the finance minister in the United Progressive Alliance (UPA) government, “pressed the RBI to paint a rosier picture of the economy, with inflated estimates of growth and inflation”.
BJP leader Amit Malviya took to microblogging site X and reacted to D Subbarao’s remark about P Chidambaram saying, “P Chidambaram, finance minister in the UPA, pressed the RBI to paint a rosier picture of the economy, with inflated estimates of growth and inflation, former RBI Governor D Subbarao writes in his latest book. But PC lectures us on institutional integrity.”
In the chapter ‘Reserve Bank as the Government’s Cheerleader?’ Subbarao wrote that governments are not sensitive to the need for the RBI.
“If a government asks to raise estimates in order to boost public sentiment and if the RBI acts on it, it will be wrong. The RBI has to maintain its credibility as its monetary policy stance is based on estimates of growth and inflation,” Subbarao was quoted by Moneycontrol as saying.
On chances of India becoming the third-largest economy at $5 trillion, the former RBI Governor said that a high gross domestic product (GDP) is a result of the large population, which is a factor of production, and India will still remain poor with an estimated per capita of $3,300.
“We will become the third-largest economy by current trends in the course of the next 3-4 years. It’s a cause for cheer, not for celebration. The large GDP is because of a large population and people are a factor of production. But that still leaves us a poor country, on average,” said Subbarao.
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