MADURAI: Delivering a speech on the union budget-2023 at the TN Chamber auditorium, former finance minister of India and Congress leader P Chidambaram said only one of the country's four engines--consumption, government capital expenditure, private capital expenditure and exports-- of GDP growth are working.
"Public consumption has reduced to 60%, especially in the rural side. The country's productivity would come down without consumption. This can be due to various reasons, including rising unemployment. Exports from the country's exports have reduced and imports have increased.
On the private capital expenditure (PCE) side, most business people are hesitating to give their capital to the government. Hence, only the government capital expenditure supports the growth of the country. This is not the same as support from the PCE side," he added.
Stating that the union government has spent a capital amount of Rs 7.28 lakh crore in the last year, Chidambaram said it was insufficient. The centre is now planning to give Rs 10 lakh crore for this year, which they cannot attain. "The government has spent less when compared to the previous budget amount. In the agriculture sector, the government announced Rs 83 lakh crore but has only spent Rs 76 lakh crore in the last year. The union government also claimed to give the state governments a tax share of Rs 3.34 lakh crore but only gave Rs 2.70 lakh crore, which is 20% less of what they said," he added.
Condemning the reduction in food, fertilisers and petroleum product subsidies, Chidambaram said it will have implications only for the farmers and economically weaker sections of the society. The rich people only pay 3% GST while others pay 64%. Hence, the rich will not be affected. he added.
Speaking on the new tax regime, Chidambaram said it does not benefit the middle-class people. "Instead of raising tax on them, the government should give tax exemptions so that they can save money," he added.