TIOL-DDT 2345 · Friday, 2 May 2014 · story 4 of 5

Who Blocked GST - FM answers - Bad Economics - Good politics?

OUR present Guest Column has an article by a former Chairman of CBEC, entitled "who blocked GST?"

Finance Minister Chidambaram yesterday answered this question. He said, "I note that Shri Sinha has pleaded in favour of GST and DTC. I am not amused. Who has stalled GST and DTC? When a consensus on GST was nearly reached, it was the Governments of Madhya Pradesh and Gujarat that stalled further progress."

Chidambaram took credit for a lot of things that happened in the last ten years like:

- economic growth during in the 10 years of the United Progressive Alliance's rule was far higher than the economic growth in the 57 years prior to it.

- The UPA's achievements, especially in disbursement of Rs 57,700 crore education loans and Rs 36,900 crore credit to women's self-help groups deserved to be highlighted.

- UPA's legacy was such that if the new government were to follow sound economic policies the country could "achieve 6 per cent growth in 2014-15, even though the international situation remains very, very tepid.

The soon-to-be-ex-FM said, "I would be very unhappy if somebody goes out with a message that good economics is not good politics because the opposite is the frightening thought that bad economics is good politics."

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This figure was released by the Congress Party, but somehow it found its way into the Fin Min website - http://www.finmin.nic.in/7CPC/decade_growth.pdf

A very thin line demarcating the party and Government!