With the economy in recession, the Centre should hike public expenditure to revive domestic demand, the CPI(M) said in a statement here in Tuesday.
The party said the data released by the Centre showed the “total devastation” of the Indian economy that began much before the Covid-19 pandemic emerged. “A 24 per cent fall in the GDP growth rate is phenomenal and unprecedented. The cumulative impact of demonetisation, GST implementation and the abrupt unplanned, unprepared national lockdown have all contributed to the destruction of the Indian economy,” the statement added.
It said the primary cause for this is the massive fall in domestic demand. “Instead of addressing this issue by vastly enhancing public investments to build our much-needed infrastructure and general large-scale employment, which would have strengthened the demand in the economy, the Modi government is focused on pursuing the neo-liberal trajectory of making more funds available for investment by private corporates, giving them greater tax concessions and looting national assets,” the CPI(M) charged.
It said no amount of incentives for private investment can revive the economy. “What is produced by such investments needs to be sold in the markets. There are no buyers, both globally and domestically,” it said and reiterated the demand for massive hikes in public investments coupled with cash transfers and distribution of free food for meaningful economic recovery.