'Is CEA Arvind Subramanian stupid, too?' Chidambaram asks Modi

Former finance minister and Congress leader P. Chidambaram on Thursday took to Twitter saying that if Prime Minister Narendra Modi's latest statements on the Goods and Services Tax are taken seriously, then the government's Chief Economic Adviser (CEA) Arvind Subramanian was also to be considered stupid. 

The former finance minister's comments came in response to Modi's "Great Stupid Thought" jibe at the Congress party and its Vice President Rahul Gandhi. Modi had criticised the Congress after it demanded an 18-per cent cap on GST rates. 

Chidambaram asked if the CEA was also "stupid" for having a similar view. "If it is Grand Stupid Thought to argue for a cap of the tax rate at 18%, then CEA Dr Arvind Subramanian and many other economists are stupid. Is that what PM is saying?" asked Chidambaram.

In a rebuttal to Gandhi's repeated criticism of the GST, a key economic reform undertaken by the NDA government, Modi said a "recently emerged economist" was propagating a "grand stupid thought" by suggesting a uniform GST rate of 18 per cent.

Chidambaram responded to the criticism saying: "Has PM read the CEA's report on Revenue Neutral Rate? Did not CEA recommend an RNR of 15-15.5%? Why can't the normal GST rate be 15% and RNR plus rate on luxury goods be 18%?" he asked.

The senior Congress also called out the ruling party for not slashing fuel prices even as crude oil prices dipped in the global market. He said tax and spend is the "credo" of the BJP government. "Example: when crude oil prices fell by 50 per cent, prices of petrol and diesel remained the same."

Chidambaram said 25,000MW of stressed power assets, no tender for power purchase, and no demand for power. Yet, the government claims that "all is well with economy!" 

(With inputs from PTI)