New Delhi, Feb 10 : Continuing the discussion on annual Budget 2020, senior Congress member Jairam Ramesh on Monday said that this Budget was not 'aspirational,' but 'perspirational' because it is based on assumptions, the biggest of them being disinvestment.
Slamming the Government, he said the importance of the annual Budget is declining in the last few years, as three major announcements like Demonetisation, the Goods and Service Tax (GST) and tax cut for the corporates have been announced, outside the Budget.
Ramesh said that despite the highest foreign reserve, highest food stocks and strong Government, the Finance Minister was heavily depending on assumptions, but the credibility of these assumptions was doubtful, while the Government needs to take steps to increase domestic savings. Describing the state of economy, he said the fundamental cause in the economy are the decline of GDP growth rate and the rate of investments as that growth comes from investment. "The entire Budget hinges around Rs 2.1 lakh crore from the disinvestment and a massive privatisation of Life Insurance Corporation (LIC) and Bharat Petroleum Corporation Limited (BPCL) and heavily depending upon the 'foreign investment'," Ramesh said.
He also warned the Government that no country has survived on the foreign investment, but again the foreign investment is not coming because of fear among the investors and their confidence is down and this fear and confidence is down, which needs to be answered by the Finance Minister. He also said the Government has announced that it will give 42 per cent to the states, but actually gave just 32.
Earlier, Nationalist Congress Party (NCP) member Praful Patel, said there was a lack of investment in every sector, be it auto or agriculture, no substantial investments had come up in any of the core sectors. (UNI)