Congress takes dig at FM's announcements, says "Today's problems could become tomorrow's nightmares"

Following Finance Minister Nirmala Sitharaman's announcements on measures to boost the economy on Monday, the Congress party took a jibe at the Finance Minister, calling the announcements as 'a drop in ocean'. Congress spokesperson Gourav Vallabh suggested that the Central Government should provide money to the states for new investments and should take loans itself, rather than asking the states to take loans.

New Delhi: As Finance Minister Nirmala Sitharaman, on Monday, announced several measures to boost the ailing economy, saying that "today's solutions should not become tomorrow's problems", Congress party in return took a jibe at the Union Minister by addressing the announcements as "today's problems could become tomorrow's nightmares".

Congress party termed the announcements of Finance Minister Nirmala Sitharaman, including the Rs 12,000 crore interest-free loans for states, as 'a drop in ocean', suggesting that the Government should formulate a solid economic policy, rationalize GST and provide direct cash into the hands of consumers to make the country come out of the 'severe recession'.

While addressing a virtual press conference, Congress spokesperson Gourav Vallabh suggested that the Central Government should provide money to the states for new investments and should take loans itself, rather than asking the states to take loans.

Slamming the Central Government, he said, "Why this Government has got the enlightenment after months to increase demand in the market? There is such a severe recession in the economy, the world's largest agencies are repeatedly suggesting a downfall of the Indian economy. Those who used to talk about the estimate of -5% earlier, have now reached to the estimate of -10% to -11% today."

Praveen Chakravarty, Congress' Chairman of Technology and Data Cell, took a dig at FM, saying, "The Finance Minister unveiled a set of measures today and termed them as 'fiscal stimulus' for the economy which she claimed will stimulate demand and investment. We are glad that FM recognizes the need to stimulate demand."

Calling PM Modi's stimulus package of Rs 20 lakh crore a "complete failure", Chakravarty further added, "FM announced Rs 12,000 crore to states for capital expenditure and there were three conditions on that. The total capital expenditure budget for FY21 for states is nearly Rs 9 lakh crores. FM says I'll give 1.5% extra. Is that meaningful?"

Earlier today, FM Nirmala Sitharaman announced an LTC Cash Voucher Scheme, under which Government employees can opt to receive cash amount to leave encashment plus three times the ticket fare, to buy items which attract a GST of 12 percent or more.

Objecting over the idea, Congress suggested that the Government employees already have travel allowance as a part of their salary and by today's announcement, FM has "ordered" the Government employees how to spend their own money and called it "stimulus for demand".

"We have been saying this for several months that to increase the demand, the Government needs to give money directly in the hands of people. FM forgot the most basic lesson about money- it is fungible. Whether it is called LTC or festive advance, money is money for an individual. Unless there is additional money, the individual is not going to spend more. So where is the question of demand stimulus?" Gourav Vallabh asked.

In a series of questions posed over Central Government, he asked, "What took the Government 6 months to realise that low demand is the main problem facing our economy today when instead the focus of first package was purely on credit expansion and debt restructuring?"

He added, "Rs 12,000 crore to states for capital expenditure is no more than a lame joke on Economy. What effect will a 1.33% increase in capital spending by States have on the economy? Did the announcements made by FM today provide anything substantially extra or additional for the economy?"

"Overall, the measures announced today are merely that- announcements. There was no extra spending to boost demand and increase in the state's capital expenditure are paltry and untimely. This is yet another vindication that Modi Government is at its wit's ends when it comes to managing the economy," stated the Congress leader.