New Delhi: The Congress on Monday said the fiscal stimulus package announced by the government is "hopelessly inadequate" given the gravity of the economic crisis as it amounts to only Rs 1.86 crore, which is 0.91 per cent of the GDP.
He further added that most analyst and rating agencies have placed the size of this fiscal stimulus at between 0.8 to 1.5%. "We note, with deep regret, that the fiscal stimulus package has left several sections high and dry including bottom half of the population, migrant workers, farmers, landless agricultural labour, daily wage non agricultural labour, MSMEs and many others," he said.
The following qualify as the Fiscal stimulus measures according to chidambaram | ||
SN | Item | (Rs.Cr.) |
1. | Revenue loss due to tax concessions | 7,500 |
2. | Pradhan Mantri Garib Kalyan Package | 33,000+60,000 |
3. | Medical and Health infrasturcture | 15000 |
4. | EPF Support for Business & Workers | 2,800 |
5. | Reduction in EPF rates | 6,750 |
6. | Free Food grain Supply to Migrant Workers for 2 months | 3,500 |
7. | Interest Subvention for MUDRA Shishu Loans | 1,500 |
8. | Additional credit through KCC | 8,000 |
9. | TOP to TOTAL: Operation Greens | 500 |
10. | Promotion of Herbal Cultivation | 4,000 |
11. | Viability Gap Funding | 8,100 |
12. | Additional MGNREGS allocation | 40,000 |
Total | 1,86,650 |
The party sought a revised and comprehensive package of 10 per cent of the GDP.
He also said that currently the government should not think about fiscal deficit as the immediate concern should be to "borrow more, spend more and give a fiscal stimulus to the economy".
"We express our thorough disappointment and request the government to reconsider the stimulus package and announce a revised and comprehensive fiscal stimulus package of not less than Rs 10 lakh crore of real additional expenditure equivalent to 10 per cent of GDP," he said at a press conference through video-conferencing.