“It is nonsensical and childish. Is the current MP, Prem Singh Chandumajra, from Anandpur Sahib? He is from Patiala. I am from Chandigarh. Is that nearer or Patiala? These are non-issues. The real issue is of development,”Manish Tewari said in a media interaction after his roadshow. (Express Photo by Kamleshwar Singh)
While the ruling party claims that Prime Minister Narendra Modi and Finance Minister Nirmala Sitharaman are already working on making India a $5-trillion economy by 2024, and that the new target should be $10 trillion, the Opposition on Thursday ripped into the government and accused it of pushing the economy into a crisis.
Initiating the debate on the Union Budget in Lok Sabha, Congress member Manish Tewari said, “India’s economy is at a very critical stage…. The economy has been affected with coronavirus while the government is giving medication for common cold. It is very unfortunate.”
Citing data to show the state of the economy, Tewari maintained that those in the government are not aware of the issues on the demand side, and that its solution does not come from the supply side. “Sometimes it appears that this government, by hiding behind the economic slowdown, is trying to help the capitalists,” he alleged.
“Every single number in the Budget is a lie. If you want, I can put that statement on the floor of the House,” he said, adding that India’s GDP growth at 5 per cent is the lowest in 11 years, and that the employment rate is the lowest in the last few decades.
Countering Tewari, BJP’s Jayant Sinha said the Congress leader is looking at the rearview mirror. The BJP, he said, is looking ahead at a $10-trillion economy.
Asserting that crony capitalism — which he termed “billionaire raj” — and “fake socialism” were at their peak under the Congress-led UPA, Sinha said, “Like the Prime Minister said, if you want to have a new India, you should have a new energy, a new development model.”
Sinha said that expenditure proposed in the Budget is aimed at creating assets, a new financial architecture was created with the insolvency and bankruptcy law, and that the restructuring of banks would pave the way for a stronger economy. Sinha called it a “feel good” Budget that is for the common man – “we have to look forward.”
He also maintained that the economy was moving at a great pace. “If we look at the GST collection numbers, we will find that the economy is moving ahead,” he added.
DMK member Kanimozhi asked how the government will meet the targets proposed in the Union Budget when the GDP grows at 5 per cent. She said the crop insurance scheme has failed to protect farmers from natural disasters, as the insurance amount is too low and “insulting” to farmers.
Criticising recommendations of the 15th Finance Commission on divisions of tax revenue between the Centre and states, she said these are unfair to states that have controlled population growth, as the commission considers demography as a basis for its proposals.
Kanimozhi pointed out the change in terms of reference, asking states to pay for defence allocation, and said it comes under the Centre’s purview and its expenditure should be borne by the Union government. “Why should states pay for things which are entirely under the Centre, unless you have intention to move defence into concurrent list,” she asked.
TMC member Abhishek Banerjee alleged that Sitharaman’s 160-minute speech had nothing for 130 crore people. “Clearly, the government went ahead with the motto that if you cannot convince the people, confuse them,” and the Budget speech succeeded in that, he said.
The Budget, he said, comes in the backdrop of GDP growth touching an 11-year low, unemployment rate at a 45-year high, investment rate at 17-year low, and the lowest household savings in eight years. Criticising the disinvestment proposals, Banerjee said the government has embarked on a “Becho India (sell India)” drive and cited the decision on listing of LIC as one of putting “another family jewel on the block”.