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'Indian economy like a car with 3 tyres punctured,' says P Chidambaram

Government expenditure is on only in healthcare and in some other amenities, he said and added that "To keep this expenditure going on, the government has continued taxing petrol, diesel and even LPG. It is squeezing money from people in such taxes and spending some from it on public amenities.

Edited by: India TV News Desk, Thane [ Updated: June 04, 2018 8:33 IST ]
Image Source : PTI/FILE

P Chidambaram

Commenting on the present condition of the Indian economy, former finance minister P Chidambaram said that it has become like a car whose three tyres are punctured.

On Sunday, he attacked the BJP government on rising petroleum prices and other issues. 

"Private investment, private consumption, exports and government expenditures are four growth engines of an economy. It's like four tyres of a car. If one or two tyres are punctured, it will slow down but in our case, three tyres are punctured," the senior Congress leader said at an event organised by the Maharashtra Congress unit, reported news agency PTI. 

Government expenditure is on only in healthcare and in some other amenities, he said and added that "To keep this expenditure going on, the government has continued taxing petrol, diesel and even LPG. It is squeezing money from people in such taxes and spending some from it on public amenities." 

He also criticised the Narendra Modi government for introducing a "five-slab" Goods and Services Tax (GST) regime. 

"Post-demonstration this government has introduced GST with five tax slabs with a cess over it. In other countries, GST is just one tax system but we can have two types of taxation in India. Still, having five slabs is not what we had imagined about GST," he said, reported the news agency.

It is pertinent to mention here that on June 6 Chidambaram has to appear before the CBI to appear for questioning in connection with alleged irregularities in the clearance of foreign investment in INX media, sources said. 

The Delhi High Court had recently granted Chidambaram interim protection from arrest till July 3 in the case. 

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