Bangalore: Finance minister P. Chidambaram said on Tuesday that the central government intends to ensure an adequate flow of credit to tackle the slowdown in economic growth. He said banks had assured the chief ministers that, in line with Reserve Bank of India (RBI) and central government policy, there would be no deficiency in the flow of credit.
“In fact, a part of the answer to a slowdown to the economy is to accelerate credit,” he said at a conference of chief ministers and finance ministers from the southern states.
The government had been monitoring the implementation of the annual credit plan in all states, he said. “The overall conclusion is that southern states are doing much better than the rest of India,” Chidambaram said. Chief ministers Jagadish Shettar (Karnataka), N. Kiran Kumar Reddy (Andhra Pradesh) and N. Rangasamy (Puducherry) attended the deliberations. Tamil Nadu and Kerala were represented by their finance ministers O. Panneerselvam and K.M. Mani, respectively.
Chidambaram said the issue of the goods and services tax (GST) figured at the meeting. “The finance minister of Kerala urged me to push the GST forward and to implement the GST as soon as possible. I fully endorse what he has said,” Chidambaram said. However, the GST issue has now been handed over to two committees set up by the empowered group of ministers at the last meeting.
On purported differences over policy with RBI governor D. Subbarao, Chidambaram referred to his previous remarks that none existed and they were a media creation. “You asked the question again,” the minister said. “After two days, I will give the same answer.”