New Delhi, Oct 7: Congress on Monday hit out at the BJP-led union government and alleged that despite the economic slowdown badly affecting all sectors, the government is not taking any steps to improve the situation.
"Due to economic slowdown, companies are forced to shut for 10 days in a row and there is nill work. The BJP government is not taking any steps to improve the economic condition. The situation is bad and the government is trying to escape from being blamed", Congress general secretary Priyanka Gandhi Vadra tweeted in Hindi.
Moments after party general secretary's tweet surfaced, Congress spokesperson Supriya Shrinate, while addressing a press conference at AICC headquarters, said the government must first acknowledge and then accept that the country is in an acute slowdown. "The problem is, you need to accept that the country is facing acute slowdown and then you need to have a comprehensive solution, you need to have bold reforms, you need to justify your political mandate", said Ms Shrinate.
Referring to the RBI data, she said in the last one year, fund flow to the commercial sector is down by 88 per cent. "Last year, this figure was at Rs 7.36 lakh crore now it is around Rs 91,000 crore. This is important because this is non-food credit. This includes industries, services, agriculture, and personal loan. Between April 2019 to the end of September 2019, in this period, credit has collapsed. Which means economic activity has stalled, which also means, no work is being done on the economy", the Congress spokesperson added.
She further stated that the question is how there will be growth without the credit and added that "a growth of 5 per cent was reported in the first quarter. If we are to believe former Chief Economic Advisor Arvind Subramanian, growth is not 5 per cent and I am fully convinced today". "This is happening despite RBI cut repo rates. Repo rate is down by 1.35 per cent from January till now. Despite that people are not taking credit because they're not convinced that they can do economic activity with this credit because people are insecure about their jobs", she stated.
Ms Shrinate pointed the recent consumer confidence survey conducted by the RBI and said "it is at a 6-year low in September. "People’s faith in the Indian economy plummeted to a 6-year low in the month of September and over 50 per cent of the people are convinced that jobs will no longer be created", she added. The Congress spokesperson further blamed the government of continuing with its 'piecemeal approach' and added that it does not have a comprehensive solution to put the economic mess in order. (UNI)