FM, advisors are like ‘Alice in Wonderland’, says Cong

FM, advisors are like ‘Alice in Wonderland’, says Cong

Agency News

New Delhi, Sept 28 :  Continuing to attack the Narendra Modi Government on the current state of the Indian economy, the Congress on Saturday said the government has no strategy to deal with the economic slowdown and said that Union Finance Minister Nirmala Sitharaman and her advisors are appearing like 'Alice in Wonderland'.
"You cut down corporate tax thinking they will borrow and invest but you don't leave money in market for them to borrow. There's so much disconnect. It appears that the Finance Minister and her advisors are like Alice in Wonderland. There is no strategy to deal with this economic slowdown", said Congress spokesperson Supriya Shrinate, while addressing mediapersons at AICC.

Taking a further dig at the current dispensation , Ms Shrinate said that the government was good at media management and diverting the attention from the real issues. However, it is not addressing the real concerns that are posing a threat to the economy.

She said that the government has reduced corporate tax and hope they (corporates) will invest more. She added that "the common man should have been given more money to spend, to revive demand".

'Instead corporates were given tax relief. They will fix their balance sheet, improve dividend but not invest,"she said.

Pointing out that the Government had not left money in market for the corporates to borrow, she said, "In the first quarter itself, government borrowed 40 per cent of what it was supposed to borrow through the year. There’s an economic term 'crowd in and crowd out’. When you borrow so much, private investors don’t have access to money in the markets.'

The Congress spokesperson pointed out that while the outbound remittance was 1 billion dollar in 2013-14, last year it was 13 billion dollar, a 13 fold increase.
"The faith in Indian economy, in our growth has substantially weakened. This government is bewildered, they don’t know what to do," she charged.

Alleging that there was a variance in the statements made by the RBI and the Finance Minister, she said, "The RBI says one thing while the Finance Minister says a different thing. RBI announced a cut in repo rate previously saying there is an issue of liquidity in the market. Finance Minister meets with bankers and says there is no problem of liquidity. Are the two hands of the government not talking to each other?"
She said that the government was in a bewildered state and yet to work out concrete strategies to save the economy.(UNI)