Sudden shock of lockdown pushed economy from slowdown to complete shutdown: Congress

Congress General Secretary Mallikarjun Kharge, in a statement, slammed Modi government over its economic policies and relief measures provided to various sectors during Coronavirus lockdown. Kharge asserted that the 62 days of lockdown has put the Indian economy in grave crisis and sectors like tourism, hospitality, needed specific measures for their revival for which Government should have created a sector-wise plan.

New Delhi:Congress party, on Monday, lashed out at Central Government's economic policies and relief measures that are being given to various sectors which got severely affected during the Coronavirus induced nationwide lockdown.

"India's GDP growth has been declining for last 6 years the crisis was brewing even before the Corona pandemic. Sudden shock of the lockdown has pushed the economy from a slow down to a complete shutdown," said Congress General Secretary Mallikarjun Kharge, in a statement.

Kharge asserted that the 62 days of lockdown has put the Indian economy in grave crisis and sectors like tourism, hospitality, airlines, transport, retail, restaurants, construction needed specific measures for their revival for which Government should have created a sector wise plan.

"But it is clear from the measures announced last week that the government has no sense of the crisis or has plainly refused to address it to revive the economy," he said.

He further added, "The government needed to revive the economy by reviving supply demand and credit cycle with its financial package. Instead, the economic package doesn't just prove that government is insincere but has failed on all fronts. Announcements of Prime Minister should have been made with a lot of deliberation and seriousness, especially during such an unprecedented crisis."

Congress party has repeatedly claimed that the total cost of stimulus package announced by the Central Government, works out to less than 1% of the country's GDP and the announcements were just being made to get "grand headlines".

Congress leader alleged, "The agenda of Government under the cover of Corona relief in the name of reforms seems to be selling PSUs, when the markets are down, removing the protection of labour laws and allowing the rich to freely by distressed farmers only asset- his land. The relief package and it's press conferences have not only exposed the ability of this government towards the migrant workers but also its arrogance and hypocrisy."

While accusing the Government for "openly mocking" the plight of migrant workers, Kharge asserted that if direct cash transfers were announced at the time of first lockdown, then probably these thousands of people would not have felt the need to walk back to their homes.

He further claimed, "The government stays providing free ration from its overflowing godowns is a part of relief package and put a price of Rs 30,500 crores to it. This ration was to be given to those entitled to it anyway. What is the special relief in giving the monthly ration due to the poor?"

He added that even top Industrialist have asked direct cash transfer of Rs 5,000 to Rs 7,500 per month to the poor in a way to boost demand and to ensure economic freedom to the poor by preventing at least 20 crore people from following back into poverty.

On the issues faced by MSMEs, Kharge stated, "All steps taken for MSME sector will not help in creating demand for their products. Most MSMEs do ancillary and job works for large industries which are now reluctant to start functioning because they do not see any demand in the market today. The government has ignored putting money in the hands of consumers."

He alleged that Center has ensured through the court that industries need not pay salaries to workers if they are closed.

"Government could have given loans based on EPFO or ESI records to support businesses to pay the salaries for next 3 months. Alternatively, the government could have rewarded honest tax paying businesses who provide relief to their employees by announcing a package for every business based on their tax returns," he suggested.

Concerning over the expectations of fall in GDP by 45% un the second quarter, Kharge said that agriculture sector is the only bright spot and hence, government should spend money to procure harvest.

"Give Rs 2,000 per quarter to farmers, which comes to a measly Rs 500 per month as Pradhan Mantri Kisan Samman Yojana. If the government can announce that no insolvency and bankruptcy proceedings will be initiated against the businesses that are affected due to Corona then it should in struct banks to read treat farmer loans the same way," he suggests.

He also demanded that dispensation of GST dues to the states, who are at forefront in this fight against COVID-19.

"The Central government still owes about Rs 30,000 to 34,000 crore to the state as GST compensation for December and January. The revenues of the states are already hit due to lockdown. The Minister announced that States will be allowed to borrow an additional 2% of the states GSDP but there's a lot of conditions on its usage. The union government does not have either moral authority or constitutional authority to impose such conditions. If the Union Government was sincere, it would have helped the states borrow from open market to RBI at the same rate at which the Central Government can borrow," he added.