The Congress on Tuesday, along with the former party chief, hit out at the government over the stimulus measures announced by it to support the pandemic-hit economy. Rahul Gandhi Stating that no family can afford the economic package on their daily needs and it was not “another sham”. Finance Minister Nirmala Sitharaman on Monday announced Rs 1.5 lakh crore additional loans for small and medium businesses, more funds for the health sector, loans. Visa fee waivers for tourism agencies and guides, and for foreign tourists as part of a package to support the economy.
Responding to the government’s stimulus package for the economy, Gandhi said, “No family can spend FM’s ‘economic package’ on their stay-food-medicine-child’s school fees.” “This is not a package, but another sham!” He said in a tweet in Hindi. Senior Congress leader P Chidambaram also criticized the government over the package and said the answer to this “crisis” is to increase demand by putting money in the hands of the people, especially the poor and the lower middle class.
“A few elementary truths: Credit guarantees are not credit. Debt is more debt. No banker will lend to a debt-ridden business.”
“More supply does not mean more demand (consumption). Conversely, more demand (consumption) will trigger more supply,” he said. Chidambaram argued that demand will not increase in an economy where jobs are lost and income or wages are reduced.
“The answer to this crisis is to put money in the hands of the people, especially the poor and lower-middle class,” he said. The Congress on Monday claimed that the measures announced by the finance minister “gave nothing but headlines” and said the government should take steps to boost demand to revive the economy “which is still in recession”.
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