Cong slams govt over state of economy, says rural India 'driven into hole'

The Congress on Wednesday attacked the government over the state of the economy, saying it is time for the Modi dispensation to wake up, take note of "real statistics" and fix the problem.

It also said rural India has been driven into a hole by the Modi government. The opposition party's attack on the government came shortly after Finance Minister Nirmala Sitharaman launched a spirited defence of her handling of the economy, comparing macroeconomic indicators with past Congress rules and said the growth may have slowed down but the economy will never slip into recession. Congress spokesperson Rajeev Gowda alleged that there is an agrarian distress in the country but the government will ensure that no data comes out.

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"There was an extensive discussion in Rajya Sabha on the state of economy today but they (government) were mostly blank. The RBI has asked the government to look into its Mudra Scheme saying these loans are going bad," he said at a press conference here.

There is an agrarian distress but the government will ensure that no data comes out, he added.

"Rural India has been driven into a hole by the Modi government. The people benefitted from Minimum Support Price (MSP) under the UPA government but it has fallen under the Modi government," the Congress spokesperson claimed. "The measures that are being taken are not resolving anything. A lot more trouble is on its way, monthly GST targets have not been met in 2019, it will result in a bigger fiscal deficit. Despite taking money from RBI they will not be able to meet their budget targets," he said.

Even the Kisan Samman Yojna only provides Rs 6,000 to farm owners and not to farm labourers who are in a worse spot, Gowda said. "Falling income, falling wages and falling purchasing power has brought about an epidemic of malnutrition. Consumption of cereals has gone down by 20 per cent," he said. Agencies across the world are cutting down India's growth projections and they have lost faith in this government's ability to manage the economy, he said.

"Instead of passing on the bonanza the government got from lower oil prices, they kept oil prices high to make up for fiscal deficit. This government is only taking care of it's crony capitalist friends," Gowda alleged. "It's time for the government to wake up, take note of the real statistics and take measures to fix the economy," he said. 

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