The package made the government violate fiscal consolidation norms resulting in high inflation, he said.
Speaking in the Rajya Sabha in 2013, when he was finance minister, Chidambaram had said even domestic problems had contributed to the poor state of India’s economy. “One of the domestic factors is that we allowed fiscal deficit to be breached and we allowed current account deficit to swell because of certain decisions we took during the period 2009 to 2011,” he had said.
Later, he told the Lok Sabha: “When I took over, I knew that I was returning to a very difficult pitch. The fiscal deficit limits had been breached. In fact, the budget estimates were awry. The current account deficit had swelled.”
He said that the stimulus package resulted in the government missing the targets on current account deficit, revenue deficit and fiscal deficit, and a combination of all these pushed inflation to a high of 14%. People turned against the UPA government as inflation shot up, he said, as he analysed the Union Budget presented by his successor Arun Jaitley.