People of the country must know about catastrophic impact of Modi govt seeking Rs 3.6 lakh crore from RBI: Chidambaram | WeForNews | Latest News, Blogs People of the country must know about catastrophic impact of Modi govt seeking Rs 3.6 lakh crore from RBI: Chidambaram – WeForNews | Latest News, Blogs
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People of the country must know about catastrophic impact of Modi govt seeking Rs 3.6 lakh crore from RBI: Chidambaram

The government may force to pass a resolution at the RBI board meeting to transfer a large sum of money from the reserves. Two scenarios can emerge if such a situation happens. Either the RBI gives in or the Governor resigns. Both the situations will be a disaster and will have catastrophic impact on the country’s economy,” Chidambaram warned.

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Guwahati, Nov 9 :Cautioning the people of the country about the  Modi government’s  action of seeking Rs 3.6 lakh crore from RBI, Former Finance Minister P Chidambaram said that the government may compel RBI to transfer a large sum of money from the reserves that will have catastrophic impact on the country’s economy,

“I fear the worst at the next meeting of the Board on November 19, 2018, and I consider it my duty to warn the people of the country of the catastrophic consequences of the BJP government’s ill-conceived actions,” Chidambaram said .

Questioning the government on the ‘proposal to fix appropriate economic capital framework of RBI’.. Chidambaram said , “The government has already taken the extraordinary step of invoking Section 7 of the RBI Act and According to reports, the BJP government is planning to override the Governor through the Board of Directors on which the government has planted its hand-picked nominees.”

“My information says that the government may force to pass a resolution at the RBI board meeting to transfer a large sum of money from the reserves. Two scenarios can emerge if such a situation happens. Either the RBI gives in or the Governor resigns. Both the situations will be a disaster and will have catastrophic impact on the country’s economy,” he warned.

Congress leader P. Chidambaram said that Prime Minister Narendra Modi-led BJP government is greedy and wants to take away the central bank’s reserves.

This government is greedy. No government in the past has asked for the reserve with the Reserve Bank of India,” said Chidambaram, who was in Guwahati to hold consultations for preparation of the party’s manifesto for the 2019 Lok Sabha polls.

He said that the RBI is not a limited company. “The RBI has a board of directors, but that cannot be compared with any private or public company. It is the central bank. The BJP government is trying to see the RBI as a limited company. They hardly have the understanding of the central Banks’s role and function,” he said.

Chidambaram said that the Centre was eyeing the RBI’s reserves, for it did not get anything out of demonetisation as most of the money came back to the banks.

Asked about the RBI’s board meeting scheduled for November 19, he said that even if the RBI Governor (Urjit Patel) resigns or complies with the government order of giving money from the reserves, the result will be catastrophic, and even worse than demonetisation.

“The Congress party believes that the RBI has the mandate to maintain monetary stability and nothing should be done to impair its ability to do so. The immediate goal of the government is to lay its hands on the reserves of the RBI and appropriate a sum of at least one lakh crore to meet its fiscal deficit target and to increase spending in an election year,” he added.

“The immediate goal of the government is to lay its hands on the reserves of the RBI and appropriate a sum of at least Rs 1 lakh crore to meet its fiscal deficit target and to increase spending in an election year,” he stated.

Earlier on Friday, the government dismissed reports that it had sought Rs 3.6 lakh crore from the RBI reserves. Economic Affairs Secretary Subhash Chandra Garg said that there was no such proposal and that the country’s fiscal deficit target was on track.

“Lot of misinformed speculation is going around in media. Government’s fiscal math is completely on track. There is no proposal to ask RBI to transfer (Rs) 3.6 or (Rs) 1 lakh crore, as speculated,” Garg said in a tweet.

 

India

Farmers adamant on scrapping of 3 farm laws as parleys continue

The leader requested the Union government to announce withdrawal of the three laws, calling these “black laws”.

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Farmers and Students

New Delhi, Dec 5 : As the fifth round of parleys between the government and farmer leaders were underway here on Saturday afternoon, several representatives of farmers said they wanted only the repeal of the three new farm laws.

Talking to IANS, they also warned of intensifying their ongoing 10-day protest on the Delhi’s interstate borders at the national level if their demands were not met.

While the government was agreeable to amendments to The Farmers Produce Trade and Commerce (Promotion and Facilitation) Act, 2020; The Farmers (Empowerment and Protection) Agreement of Price Assurance and Farm Services Act, 2020; and The Essential Commodities (Amendment) Act, 2020, farmers are pushing for the scrapping of the “anti-farmer” laws.

Kirpa Singh Natthuwala, President of Kisan Bachao Morcha from Punjab, told IANS that the farmers “don’t come up with a new agenda everyday”. “Our first and only agenda is to get abolished the three farm laws.”

The farmer leader said that the Union government was saying since the enactment of these laws in September that these were in favour of the farmers and that middlemen were behind the farmers’ protest.

“Now the government has suddenly realised that there are some faults in these laws. According to the farmers, these laws are completely wrong. We request the government to repeal these laws because they are not only harmful for Indian farmers but also over 130 crore Indians. We are approaching the Centre with a single-point agenda to get these farm laws repealed,” said Singh, who is among 40-odd farmer leaders participating in the 5th round of government-farmers talks.

Farmer leader Rampal Jat, President of Kisan Mahapanchayat, warned that if the 5th round of talks on Saturday did not fructify, farmers from Rajasthan would march along the National Highway-8 towards Delhi and camp at the Jantar Mantar in central Delhi.

The leader requested the Union government to announce withdrawal of the three laws, calling these “black laws”.

Rampal also stressed that the government should give in writing that the Minimum Support Price (MSP) system would continue.

A majority of farmers, protesting since November 26 on the Singhu border, with whom IANS talked said that they would continue with their agitation till the government met their demands, and that the protest would otherwise be intensified.

Bharatiya Kisan Union (BKU) General Secretary Harvinder Singh Lakhowal has called for a ‘Bharat ‘Bandh on December 8 if the government did not withdraw the farm laws, saying “all roads leading to Delhi in the coming days will be blocked if the new farm laws are not scrapped”.

The fifth round of talks started at 2 pm at Vigyan Bhavan in central Delhi. A group of nearly three dozen farmer leaders are participating in the meeting. Union Agriculture Minister Narendra Singh Tomar, Consumer Affairs Minister Piyush Goyal, Union Minister of State Som Prakash and Agriculture Secretary Sanjay Agarwal are also present in the meeting, like in the previous rounds of talks on December 1 and 3.

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Business

‘Economic recovery from next year itself’, says FM Nirmala Sitharaman

India can see a proper recovery next year on the back of positivity and confidence due to Covid-19 vaccines, Union finance minister Nirmala Sitharaman said on Friday, arguing that steady growth and capacity expansion in the past two months had pulled the economy out of its pandemic trough.

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Nirmala Sitharaman

India can see a proper recovery next year on the back of positivity and confidence due to Covid-19 vaccines, Union finance minister Nirmala Sitharaman said on Friday, arguing that steady growth and capacity expansion in the past two months had pulled the economy out of its pandemic trough.

Speaking at the 18th Hindustan Times Leadership Summit, Sitharaman also defended the Centre’s controversial farm reform laws, said she is not worried about food inflation and hailed the spirit of cooperation that steers the running of the GST Council.

The finance minister’s comments came days after UK became the first country in the world to approve a vaccine made by Pfizer-BioNTech, with the United States and European Union expected to grant regulatory clearances later this month to stave off a disease that has killed 1.5 million worldwide.

So far, four vaccine candidates – including one that is being manufactured in India — have declared encouraging late-stage trial results. Hours before the summit, Prime Minister Narendra Modi announced that India is set to get a vaccine within weeks.

“The vaccine coming brings in a certain positivity. A vaccine efficiently delivered…will only bring in confidence among the people, both the workers, employers and also people who are engaged in some or the other economic activity,” Sitharaman said at the 18th Hindustan Times Leadership Summit.

“The vaccine will bring in optimism and positivity. With the vaccine, economic activity will get traction.”

With 2020-21 being seen as when large numbers of Indians will get inoculated, with frontline workers and vulnerable populations prioritised, the finance minister also pointed towards the importance of logistics and distribution networks. She refused to specify how much money would be set aside for Covid-19 immunisation in next year’s Union budget.

“We don’t know what will be the details which come with the vaccine. Will it be one dose or two doses? Will it be two doses with two or three weeks in between? Will two doses be sufficient? Unless we get all these details, I really cannot work towards a number.”

At the HT Summit two weeks ago, Serum Institute of India CEO Adar Poonawalla had said that the Oxford-AstraZeneca vaccine which is being manufactured in India — could become available for the general public by April-May next year and is likely to cost around Rs 500-600 for a dose.

Sitharaman acknowledged that the current situation in the country was drastically different from when she presented the budget in February but added that the government had steered the country through the pandemic with a judicious mixture of fiscal and monetary measures.

The finance minister also touched upon the recovery in the second quarter of 2020-21, when the economy shrank by 7.5, outperforming most expectations and registering is a sharp improvement from the 23.9% contraction in the previous quarter.

Sitharaman attributed this showing to an expansion in the core sectors and said that just pent-up demand and the festive season could not have driven this recovery alone. She also pointed to revenue from the Goods and Services Tax (GST) exceeding Rs 1 lakh crore for the second consecutive month in November, as a clear indication that economic activity was returning to normal.

“Recovery is consistently happening in the last two months…you hear core sector industries, cement, iron and steel, integrated plants are all going in for expansion, not just in one unit but across the country, you’re hearing of expansion,” she said.

“There is an indication that additional demand coming in. It is not pent up or festival demand. It is likely to sustain.”

Sitharaman contested the assumption that private sector investment continued to be weak, and said core sector expansion couldn’t happen without additional private buy in.

“Banks are also seeing industry approach for additional expansion-related funding requests. You are seeing expansion in capacities and it cannot be without private investment,” she said, adding that one may have to wait for a month to see if credit is also equally expanding.

When asked about inflation – hours after the Reserve Bank of India held rates, indicating inflationary anxieties – Sitharaman said she was not worried by what she termed as seasonal fluctuations.

“There are seasonal ups and downs in prices and the commodities about which we are seeing clear hike in prices are largely seasonal. If you take foodgrains and edible commodities, there are seasonal fluctuations. The government, through inter-ministerial group, has been very frequently looking at changes and taking conscious calls to fill in any supply level shortages through imports and logistical constraints are getting sorted.”

“This blip in inflation, particularly of food items, will ease out.” Hours before, RBI governor Shaktikanta Das said retail inflation is likely to remain elevated and pegged it at 6.8% for the third quarter.

Sitharaman defended the government’s relief measures for the middle class, and said 300 million people received cash transfers during the pandemic lockdown period but acknowledged that the fiscal deficit will certainly be higher than the 3.5% of GDP target set in the 2020 Union budget.

“What has given me most strength is that people of India, given the challenges and difficulties, have still kept going and today, that’s the reason for the revival… It’s the virus and related matters were more of a worry than the economy,” she added.

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Health

Covid-19 vaccine should be given free to everyone, says NCP’s Nawab Malik

During an all-party meeting on Friday, Prime Minister Narendra Modi informed the opposition leaders that the Centre is in talks with all the state governments over the price of the vaccine.

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NCP nawab malik

A day after Prime Minister Narendra Modi held an all-party meeting on Covid-19 vaccination in the country, Maharashtra Cabinet Minister and NCP leader Nawab Malik has said that Covid-19 vaccine should be given free to every citizen of the country.

Speaking to ANI, Malik said, “The Prime Minister held an all-party meeting and now they are saying State and Centre will decide the price, how can it be? In Bihar, they have given the assurance that vaccination will be free. We demand vaccine should be given to each Indian free of cost.”

During an all-party meeting on Friday, Prime Minister Narendra Modi informed the opposition leaders that the Centre is in talks with all the state governments over the price of the vaccine and that the decision regarding the pricing will be taken keeping public health as the topmost priority.

He said that a Covid-19 vaccine is expected to be ready in the next few weeks, and as soon as scientists give a green signal, vaccination will start in India.

“Teams of central and state governments are working together for the vaccine distribution. India has the expertise and capacity in vaccine distribution and fares better compared to other nations,” said PM Modi.

“As soon as scientists give a green signal, vaccination will start in India. Healthcare, frontline workers, and the elderly people suffering from serious diseases will be given priority in vaccination,” he stated while asking suggestions from the representatives of the party.

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