5% estimate growth 'imaginary': Ex-FM

January 08, 2020 23:25

Former Union finance minister Yashwant Sinha on Wednesday questioned estimation that the economy will grow at 5 per cent in 2019-20, saying the figure is "imaginary" and raised doubt about the Modi government's capability of tackling economic issues.

Talking to reporters, Sinha also demurred Prime Minister Narendra Modi holding "pre-budget consultation", saying it is "unprecedented" and asked what the latter's Finance Minister is doing.

India's GDP growth is seen dipping to an 11-year low of 5 per cent in the current fiscal, mainly due to poor showing by manufacturing and construction sectors, government data showed on Tuesday.

"Even this 5 per cent growth is imaginary. Because this does not include what has happened, the damage which was caused as a result of demonetisation and GST on the MSME and the informal sector," Sinha told reporters in Mumbai.

The former Union finance minister said several economists are suggesting that India is experiencing negative growth if the factors caused by demonetisation and GST are to be kept in mind.

The economic situation is "too bad", he added.

"You (reporter) talked about budget. The budget has lost all its meaning. The budget has lost its sanctity which was there at some point of time," he said while replying to a query.

"I have grave doubts about the capability of this government to tackle economic issues," the former BJP leader added.

Sinha said there is no magic wand to correct the course of economy and added there is a need for sustained effort to put things on track.

"But frankly, I don't expect anything much from the government either before or after," he said.

« Back to LIVE

TOP STORIES

EPL PIX: Manchester City thump Wolves; Arsenal down Bouremouth

IMAGES from Premier League matches played on Saturday.

Real Madrid secure LaLiga title after Girona thrash Barca

Ancelotti's second-string players proved they were up to the task as they secured three points for Real and kept them on course for the inevitable LaLiga title celebrations.

Kotak Mahindra Bank reports 25% rise in Q4 net profit

Kotak Mahindra Bank on Saturday reported a 25 per cent growth in its March quarter net profit at Rs 5,302 crore, limited by a drop in the core income due to narrow interest margins. On a standalone basis, the city-headquartered lender's...

1 IAF personnel killed, 4 injured in Poonch terror attack

The attack took place near Shashidhar in the evening when the vehicles were moving towards Sanai Top in the district's Surankote area.

IPL PIX: RCB fumble before scripting win over GT

IMAGES from the Indian Premier League match played between Royal Challengers Bengaluru and Gujarat Titans in Bengaluru, on Saturday.