Published 18:16 IST, August 28th 2020
'Why hide utter failure?': Surjewala lambasts FM for linking economic situation to COVID
Congress spokesperson Randeep Surjewala lambasted Finance Minister Nirmala Sitharaman for attributing the crisis in the Indian economy to the COVID situation.
On Friday, Congress spokesperson Randeep Surjewala lambasted Union Finance Minister Nirmala Sitharaman for attributing the crisis in the Indian economy to the COVID-19 situation. Speaking after the 41st GST Council meeting on August 27, Sitharaman observed that the economy is facing an extraordinary 'Act of God' situation, which may lead to contraction of the economy. According to Surjewala, the economy had faced setbacks even before the advent of the novel coronavirus crisis.
For instance, he pointed out that the Gross Domestic Product declined for 6 consecutive quarters as of 2019. Moreover, Surjewala highlighted that there was weak demand in the previous year as well. He alleged that the Centre was trying to hide the failure of its economic policies. Currently, there are 33,87,500 confirmed novel coronavirus cases in India out of which 25,83,948 patients have recovered while 61,529 fatalities have been reported.
Read: COVID-19 An 'Act Of God', Economy To Contract This Fiscal: Finance Minister Nirmala Sitharaman
Congress cites the RBI report
Recently, the Congress party slammed the Union government after the Reserve Bank of India released its Annual Report 2019-20. The report noted that the COVID-19 pandemic has exposed the inequities in the country's economy. It pointed out that the hospitality and tourism sector has witnessed more job losses than in other areas. Stressing that the poor had been hit the hardest, the RBI also mentioned that urban consumption had suffered a huge blow with a significant dip in passenger vehicle sales and supply of consumer durables in the first quarter of 2020-21. While the movement of people around groceries and pharmacies has reached pre-COVID levels, the mobility pertaining to retail and recreation is nearly 60% lower than that of February 2020 level.
Additionally, the RBI stated that the sharp cut in the corporate tax rate announced by the Centre has not helped in restarting the investment cycle as intended. Observing that the corporate tax regime reform had not gained traction in boosting capital expenditure, it recommended "targeted public investment funded by monetisation of assets in steel, coal, power, land, railways and privatisation of major ports by central and state governments under an independent regulator". Furthermore, the RBI suggested the formation of GST Council-like apex authorities in respect of land, labour and power to ensure structural reforms and speedy implementation of infrastructure projects.
Updated 18:16 IST, August 28th 2020