Analysing the current situation of the Indian economy, former Finance Minister and senior Congress leader P Chidambaram here on Sunday underlined that ever since demonetisation and the Goods and Services Tax (GST) were rolled out by the Bharatiya Janata Party-led central government, jobs are a 'scarce' even for college pass-outs making India sit on a volcano of unemployment.
"Jobs were destroyed due to demonetisation and GST. New jobs are scarce even for college-educated youth. Many unemployed people have given up seeking employment because the situation is hopeless. I am afraid we are sitting on a volcano. Growing unemployment is a volcano that can erupt at any time. The government that promised to create two crore jobs a year is utterly clueless. The overall economic situation of the country is quite fragile. There is no sign of recovery," Chidambaram told media here.
Talking about GST, Chidambaram said: "After the UPA rolled out VAT smoothly in 2014-15, the next logical step was GST. GST was and is a good idea. Unfortunately, the BJP blocked the GST legislation for nearly six years. When the BJP came to power it embraced the idea of GST. However, the GST that it introduced was not the same that was known all over the world. Its BJP's own distorted version."
He underscored, "Everything about the present GST is wrong - the design, classification of goods and services, multiple rates, high rate of tax, dual control by the centre and states, multiple registrations, multiple returns, inefficient GST network, insufficient capacity, absence of provision to file the revised returns, etc. In my view, the next government in the Centre must completely redesign GST and reintroduce a true GST regime that will promote the growth of trade, business and exports."
Emphasising that the GST and demonetisation are the two prominent causes of economic stress, Chidambaram said: "Both were self inflicted moves. The country suffers while the rulers rejoice in making grand promises, renaming cities, capturing crucial institutions, intimidating critics and the media and unleashing a vendetta against all opposition parties," he said.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)