Chidambaram criticises Govt for slashing interest rate of savings during lockdown

Former Finance Minister P Chidambaram, on Wednesday, criticised the Union government for the decision to cut interest rate on several savings, saying, the decision “may be technically correct, it is absolutely the wrong time to do so”.

“In times of acute distress and uncertainty about income, people depend on the interest income on their savings. Government must reconsider immediately and restore old rates until June 30,” Mr Chidambaram said in a series of tweet.

The senior Congress leader’s response came after the government decided to cut the interest rate of many savings like Public Provident Fund, National Savings Certificate and Kisan Vikas Patra.

“I know that sometimes government acts on stupid advice, but I am amazed how stupid this advice was”, he mocked.

He further said that after the three quarters’ growth rates of 5.6, 5.1 and 4.7 per cent, the fourth quarter of 2019-20 ended yesterday.

“Quarter four growth could not have been more than 4 per cent. So annual GDP for 2019-20 must be a disappointing 4.8 per cent”, Mr Chidambaram said and added, “In my view, we should not worry about growth now. The focus should be on saving people’s lives whatever it takes”.

“That is why I am appalled that the government has not yet announced Financial Assistance Plan II (FAP II)

after the miserly and disastrous FAP of March 25.

Days after Finance Minister Nirmala Sitharaman announced an economic package of 1.76 lakh crore, Mr Chidambaram had demanded that the government announce a second special package to meet the challenge, in view of national lockdown, a measure to tackle the Coronavirus outbreak.