'What about before COVID-19?': Chidambaram slams FM Sitharaman over 'Act of God' remark

Finance Minister Nirmala Sitharaman's "COVID-19 is an act of God" comment has caught her in a storm of criticisms, latest among m is former Finance Minister and senior Congress leer P Chidambaram, who, in a series of tweets questioned her alleged mismanment of ecomy before COVID-19 pandemic struck country. Taking a swipe on finance minister, Chidambaram demanded answers from Sitharaman, calling her 'messenger of God'.

Chidambaram in following tweets alleged that "Centre is absolving itself of any financial responsibility" amid pandemic and said entire financial burden has fallen on states.

Subramanian Swamy slams finance minister's statement:

Even BJP MP Subramanian Swamy on Friday questioned Sitharaman for her statement pertaining to COVID-19 and ensuing ecomic slump in country.

senior BJP leer lashed out at Nirmala Sitharaman and said that he will post video of her statement soon. In dition, he also questioned wher decline in annual growth rate from 8 per cent in 2015 to 3.1 per cent in first quarter of 2020 before pandemic should be attributed as an act of god as well. 

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Finance Minister's comment of 'Act of God'

Criticisms from political leers come as Sitharaman on Thursday said ecomy has been hit by COVID-19 pandemic, which is an 'Act of God', and it will see a contraction in current fiscal. As per Centre's calculations, states will be facing a shortfall of Rs 2.35 lakh crore in GST revenues in 2020-21.

"This year we are facing an extraordinary situation that even below 10 per cent approximate estimation you are facing an 'Act of God' which might even result in a contraction of ecomy...," Sitharaman said.

Briefing reporters after 41st meeting of GST Council, Sitharaman said Centre will pay states compensation which strictly arises out of GST implementation.

In current fiscal, compensation requirement of states has been estimated at Rs 3 lakh crore, of which Rs 65,000 crore would be funded from revenues garnered by levy of cess. This leaves a shortfall of Rs 2.35 lakh crore.

Centre has estimated that of this Rs 2.35 lakh crore, Rs 97,000 crore compensation requirement is due to GST rollout and remaining is on account of impact of COVID-19 on ecomy.

Earlier this week, Reserve Bank h said that contraction in ecomic activity was likely to continue in second quarter of current fiscal as upticks witnessed in May and June appears to have lost strength following reimposition of lockdowns to contain coronavirus pandemic.

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