Continuing its attack on the BJP, the Congress on Thursday said that the Narendra Modi government is pushing the country towards a ‘financial emergency’.
The Congress said that the Government of India is a “declared defaulter” for the first time in the last 73 years.
Read the Congress party’s full statement:
A ‘New Low’ in 73 years – ‘Economy Destroyed’, ‘Common Man’s Life Devastated’. Modi Govt is pushing India towards ‘Economic Collapse’ & ‘Financial Emergency’. Demonetisation–GST– Lockdown were not ‘Master strokes’ but were ‘Disaster strokes’.
There are dark clouds of economic decay all around us. Lives, livelihoods and jobs have been ravaged. Businesses and small & medium industries lie dilapidated. The Economy stands destroyed as GDP has been razed and mowed down. India is being pushed towards a ‘Financial Emergency’. Modi Government has plundered the economy in the last 6 years by its ‘Acts of frauds’. The Government now describes its criminal ineptitude and culpable incompetence as an ‘Act of God’. Sadly, this is the only Government in the past 73 years which blames ‘God’ for its own frauds and bluster.
1. GDP – ‘Grave Damage to Public Good’: Reduction of GDP in the first quarter of FY 2021 (a first since Independence) will have a diabolical impact on the average income of every Indian. Adjudging the impact of busting the GDP on the common man, experts give the example of per-capita income of Rs. 1,35,050 in the year 2019-20. Juxtapose it to the falling GDP of -24% in the first Quarter (April to July) of 2020-21. The second quarter (July to September) will be even worse. If GDP for the full year 2020-21 was to fall to -11%, it would lead to reduction of at least Rs. 14,900 in the Income of every Indian. On one side, inflation is hitting the common man. On the other, unprecedented surges in taxes and an economy in free fall has broken the back of people.
2. The Confidence Deficit or Complete Collapse of Confidence in Government: Today, India suffers from a ‘Confidence Deficit’ in the Modi Government. Ask the Micro, Small & Medium enterprises and they will tell you that neither do the banks extend loans or financial assistance nor does the word of the Finance Minister have any meaning. On the other hand, Banks have no faith in the Government and the Government has no faith in the RBI. States have no faith in the Central Government. An atmosphere of distrust is all prevailing. The 20 Lakh Crore ‘Jumla Economic Package’ of the Modi Government has evaporated in the vapour of its make-believe lies. This is not just a deficit of Confidence, but a total ‘Collapse of Confidence’.
3. The Tsunami of Economic Ruin – Facts Don’t Lie: A Government founded upon ‘lies and publicity’ is refusing to face the truth. But what are the facts:- (i) Facing economic desolation, 40 Crore Indians are being pushed below the poverty line. (ILO Report) (ii) In the middle of this economic depredation, 80 Lakh people were forced to withdraw Rs. 30,000 Crore from their EPFO accounts. (iii) Between April to July 2020, 2 Crore salaried people lost their jobs. In the unorganised sector, 10 Crore jobs were lost during the lockdown. (CMIE) (iv) Out of 6.3 Crore MSME units in the country, only 1/4th are able to operate at 50% of their capacity. Majority of these units are lying shut or are on the verge of permanent closure. (v) In the first quarter of year 2020-21, GDP in Construction Sector fell by -50.3%, GDP of Trade-Hotel-Transport Sector fell by -47%, GDP of Manufacturing fell by -39.3% and GDP of Service Sector fell by -26%. It means Crores of jobs were lost and there is little chance of recovery. (vi) The latest SBI Report dated 1st September, 2020 unequivocally states that GDP for the year 2020-21 would be -10.9%.
4. Central Govt has turned ‘Defaulter’ – Refuses GST Compensation to States: Attack on Federalism: For the first time in the last 73 years, Govt. of India is a declared defaulter. In the meeting of ‘Parliamentary Standing Committee on Finance’ dated 11th August, 2020 the Finance Secretary clearly said that GOI is not in a position to give GST compensation to States. The latest SBI report of 1st September, 2020 predicts a shortfall and revenue loss of 3 Lakh Crore in GST collections for the States. How will States meet their expenses? This is Economic Anarchy.
5. Designed Attack on Farmer, Labourer and the Middle Class: (i) The Modi Government has filed an affidavit in the Supreme Court conveying its decision to not extend the moratorium on payment of EMI’s by salaried class and the middle class beyond 31st August, 2020. The Modi Government has refused to provide interest waiver also. All hopes of the middle class lie shattered. (ii) A government that pats its back in the name of Farmers and labourers has pushed them to the doorstep of economic ruin and suicide. As per latest NCRB Report, 42,480 Farmers and farm Labourers were forced to commit suicide in the year 2019. This would mean that 116 Farmer and Farm Labourers commit suicide every day. (iii) The unemployed face a similar wrath. As per NCRB, 14,019 unemployed were forced to commit suicide in the year 2019, i.e. 38 unemployed were drive to suicide everyday.
A Government drunk with arrogance in annihilating India’s economy, enterprise of the industry, toiling labour of the farmer and aspiration of the youth with the sole objective to remain in power at any cost and at all costs. The Prime Minister is too occupied in image makeover by feeding the Peacocks, creating photo opportunities, changing dresses and ensuring that television is his only vision. Time to rise from the shackles of this ruinous Modi Government and rediscover the aspirations and hopes of India.