MUMBAI, Feb 12 - Terming demonetisation as the �biggest scam of 2016�, former Finance Minister P Chidambaram has said the country is likely to grow by 6-6.5 per cent in 2016-17, much lower than what have been predicted by the CSO and RBI, due to the impact of note ban.
Notably, the Central Statistical Organisation (CSO) has predicted a growth rate of 7.1 per cent and RBI pegs it at 6.9 per cent for financial year 2016-17.
�I am sorry to make the prediction that 2016-17 will end with growth (rate) between 6 and 6.5 per cent, a good one per cent down from the earlier estimate and that means a hit of Rs 1.5 lakh crore on GDP. The GDP this year is Rs 150 lakh crore, so one per cent hit is Rs 1.5 lakh crore,� Chidambaram said at a function here today. He is in the city to campaign for the February 21 Brihanmumbai Municipal Corporation polls.
Without naming Prime Minister Narendra Modi, he said, �So, somebody hit an idea in his head, he decided to go on television and announce demonetisation, and the hit is Rs 1.5 lakh crore (on GDP).� He said the growth rate in financial year 2017-18 will be same at around 6-6.5 per cent.
�2017-18 will not see a growth higher than what we have in 2016-17 as the world economy is not benign anymore and we have a unpredictable man sitting in the White House,� the senior Congress leader said, adding that growth would continue to be at the same levels in 2018-19 financial year as well. � PTI