Finance Minister P Chidambaram’s take on key issues

Finance minister P Chidambaram on Monday strongly defended the government’s economic performance, highlighting the management of the twin deficits.

ON ECONOMY’S PERFORMANCE OVER PAST 20 MONTHS

What we set out to do after my return to the finance ministry in August 2012 and in the last one year has been substantially accomplished. The economy is more stable. No one talks about a rating downgrade any more.

ON ROAD AHEAD FOR THE ECONOMY

Going forward, I can only see spirited growth in the economy provided the next government adheres to the 10-point agenda that I outlined in my interim budget speech… I will keep a firm hand on the wheel until the last day. And I sincerely hope that I hand over the wheel to another firm hand.

ON BANK LICENCES ISSUE BEING REFERRED TO EC

This process had started almost two-and-a-half years ago. This is the process where the government has no role at all. (RBI governor Raghuram Rajan) has just assumed office a few months ago. He was playing safe. But I think the process of granting bank licences should continue uninterruptedly.

ON GAS PRICING ISSUE BEING REFERRED TO ELECTION COMMISSION

In my view, there was no obligation on the part of the ministry of petroleum and natural gas to refer this issue to the Election Commission in the first place. This was a Cabinet decision taken several months ago. I think they did it out of abundant caution. I think there is no case to revisit the Cabinet decision. The Cabinet decision is a right decision.

ON LIFTING GOLD IMPORT CURBS

We could consider some more relaxations in consultation with RBI… We will consider whether some relaxation can be done.

ON BLACK MONEY AND INFO EXCHANGE WITH SWITZERLAND

I have done more than anyone else to push the other governments to share information. Mr Mukherjee (former finance minister and now President Pranab Mukherjee) as finance minister did his best. I have pressed so hard that the Swiss FM is deeply embarrassed even to meet me in international forum because I have told her that it is a very serious issue in India and she must share information with us…I intend to raise it at the G20, which meets in Washington on the sidelines of the Fund Bank meeting on April 10-11.