Great damage done to the economy that we built brick by brick: Chidambaram

Former Union Finance Minister P Chidambaram on Wednesday said demonetisation will further hit the GDP. Attacking Prime Minister Narendra Modi over the scrapping of high value notes, the senior Congress leader said that the move will shave -off one percent or more of the GDP growth. 

"One per cent reduction means loss of 1,50,000 crore to the economy," Chidambaram stressed.

Speaking at the Jan Vedna Sammelan organised by the Indian National Congress party in the national capital, he said except for the Finance Minister, no one in the world says that GDP won't be hit (because of demonetisation).

The Congress leader alleged that the government had no record of a Cabinet meeting held on November 8, mocking the Centre for keeping ministers as prisoners when PM Modi made the announcement.

Escalating his attack on the Prime Minister, he said, "Modi government has done great damage to India's economy that we built brick by brick in last 30 years".

He also reflected on the government's act to virtually take over the Reserve Bank of India's (RBI) role in the wake of demonetisation.

"Demonetisation was the decision of one person. I am the Führer. I am the leader. I must decide.", said Chidambaram as he accused the Prime Minister of taking the decision of demonetisation unilaterally without consulting others.

On Modi's cashless economy push, he said, PM has no right, it's my choice to use cash/card. Throwing a challenge to Prime Minister Narendra Modi over his aggressive campaign for a cashless economy, former Finance Minister P Chidambaram today asked if he can promise that no capitation fee will be paid by parents for their wards' admission into medical and engineering colleges.
 

"I am throwing another challenge to the PM. In the months of May and June, engineering, medical colleges will open and capitation fee will be taken. Can the Prime Minister assure that the parents need not worry? That no capitation fee will be asked or taken. Can he give that promise?" Chidambaram asked.

"When the Prime Minister talks of a cashless society, he talks of something that never happened anywhere. He has no right to decide that. He should look into global phenomenon also. In the US, cash flow is around 42 per cent, in France it is 56 per cent. It's people's choice to use cash or card," Chidambaram said at the event.

"In this country, farmers, salary class workers need cash to meet their daily needs. Three objective was told by the PM on 8th November: counterfeit currency, black money and corruption. I challenge the PM to put all those promises to test," he said.

Chidambaram demanded that the government must give compensation to farmers, who he said suffered badly because of the demonetisation drive. "I demand that the government must compensate kin of those who lost their lives because of this action," he said.

The Congress leader addressed the convention after Congress Vice-President Rahul Gandhi, who too had spoken on similar lines.