Lashing out at Narendra Modi government for the ‘pessimistic view about the economy’, the Congress on Thursday said that Economic Survey only reflects part of the deepening economic uncertainties and mismanagement inflicted by BJP on India.
In separate statements, former Finance Minister and senior Leader P Chidambaram and AICC Communication in-charge Randeep Surjewala said that “the government, speaking through the Economic Survey, is pessimistic about the economy”.
“The Economic Survey flags slowing growth, shortfall in revenue, finding resources without compromising the fiscal deficit target, impact of oil prices on the current account and recommendations of the Fifteenth FC on central government finances. I am afraid, none of these is positive or encouraging”, Chidambaram said.
The Congress response has come out hours after Finance minister Nirmala Sitharaman tabled the Economic Survey in Parliament, a day before Budget Day. Describing that the Economic Survey exposes saffron party’s hyperbole on economy, Mr Surjewala said “no jobs, no investment, no growth are three tiers on which BJP’s economic mismanagement rests.”
“The Economic Survey is truer than the multiple tall claims of the BJP Government, even though it attempts to whitewash the massive failures and gross economic mismanagement of the BJP Government in the past 5 years”, he alleged. He also said that the Economic Survey is pessimistic about the economy and makes a feeble attempt to wake up the ruling party from its deep slumber of inaction on the economic front.
Taking on different sectors, Surjewala said that no roadmap in Economic Survey to deal with the massive unemployment problem, except token phrases like ‘supporting dwarf, or smaller firms, to create jobs’. “Joblessness and unemployment is at a 45 year high at 6.1 percent. BJP Government has now officially endorsed this NSSO figure, post elections. Even though it kept on denying this before elections”, he added.
On GDP growth, Surjewala said that Economic Survey predicts GDP growth at 7 percent for FY20 without there be any foundation to sustain it. “Economic Survey does not predict any sector wise growth projections. Economic growth is at a 5 year low. Growth slowed down rapidly in 2018-19. In the four quarters, it was 8.0, 7.0, 6.6 and 5.8 per
cent. It will probably decline further in April-June 2019”, he added. He said that although Economic Survey proclaims that private investment is the ‘key driver of growth, jobs, exports and demand’, the Congress spokesperson added that “however, the grim reality is completely the opposite. Fresh investments plunged to a 15 year low. New public sector projects fell by 41 percent YOY, which is lowest in 14 years.
On Exports, Surjewala said that Economic Survey warned that prospects of export growth remained weak for 2019-20 if status quo is maintained.”Growth of exports (compared to UPA) has fallen by 15 times. (393 percent during UPA to 26 percent under Modi government)”, he added.
Surjewala said Make In India has virtually failed and added that “share of manufacturing sector in GDP has risen by only 0.5 percent in the 5 years of Modi 1.0 government. Core Sector growth has fallen to 5.1 percent in June 2019”. The Congress leader also alleged that Small, Medium and Micro businesses have not recovered from demonetisation shock.
“Banks are staring at a slippage of Rs 15000 crore of MSME loans. MUDRA loan NPA jumps by 126 percent in FY19. Growth in GST collections has come down from 6 percent in May 2019 to about 4.5 percent in June. This is an indicator of the fact that consumer spending is on the decline”, he added.
On Agriculture, Surjewala said that weak monsoon and water scarcity deepens agriculture distress.
“The farm sector grew at 2.9 percent in 2018-19. Agricultural wages grew at mere 4.64 percent in 2018. 35 farmers commit suicides daily. In Maharashtra alone, 808 farmers have taken their lives so far in 2019. A weak monsoon shall only add to the farm distress. El Nino effect are not showing any signs of relenting, indicating that the farmers are in for having a much bigger hole in their pockets than before and the doubling of farm income in five years remains distant pipedream”, he added.
Referring on financial service sector, Surjewala alleged that government unable to save failing financial institutions. “Failing shadow banking institutions and NBFCs amidst high liquidity concerns thereby indicating
more pain in store for the MSME sector. Credit contraction of NBFCs is 31 percent thereby impacting automobile, agriculture and MSMEs in an unprecedented manner. Property related loans have reduced 50-80 percent, farm credit reduced by 55 percent while education loans and housing loans fell by 43 percent and 23 percent respectively, indicating that the slowdown is for real”, Mr Surjewala added. (UNI)
