Updated: June 29, 2021 12:48:04 pm
Hitting out at the government over the stimulus measures announced by Finance Minister Nirmala Sitharaman to support the pandemic-hit economy, Congress leader Rahul Gandhi Tuesday said no family can spend the economic package on its daily needs and that it is nothing “but another sham”.
Sitharaman on Monday announced Rs 1.5 lakh crore of additional credit for small and medium businesses, more funds for the healthcare sector, loans to tourism agencies and guides, and waiver of visa fee for foreign tourists as part of the package to support the economy.
Reacting to the government’s stimulus package for the economy, Gandhi said, “No family can spend FM’s ‘economic package’ on their living-food-medicine-child’s school fees.”
“It’s not a package, but another sham!” he said in a tweet in Hindi.
FM के ‘आर्थिक पैकेज’ को कोई परिवार अपने रहने-खाने-दवा-बच्चे की स्कूल फ़ीस पर ख़र्च नहीं कर सकता।
पैकेज नहीं, एक और ढकोसला!
— Rahul Gandhi (@RahulGandhi) June 29, 2021
Senior Congress leader P Chidambaram also criticised the government over the package and said the answer to this “crisis” is to spur demand by putting money in the hands of the people, especially the poor and the lower middle classes. “Some elementary truths: Credit guarantee is not credit. Credit is more debt. No banker will lend to a debt-ridden business,” he said.
कुछ प्रारंभिक सत्य:
क्रेडिट गारंटी क्रेडिट नहीं है।
क्रेडिट अधिक कर्ज है, कर्ज में डूबे कारोबार को कोई बैंकर कर्ज नहीं देगा।
कर्ज के बोझ तले दबे या नकदी की कमी से जूझ रहे कारोबारियों को ज्यादा कर्ज नहीं चाहिए, उन्हें गैर-क्रेडिट पूंजी की जरूरत होती है।
— P. Chidambaram (@PChidambaram_IN) June 29, 2021
The former finance minister said debt-burdened or cash-starved businesses do not want more credit, they need non-credit capital. “More supply does not mean more demand (consumption). On the contrary, more demand (consumption) will trigger more supply,” he said.
“Demand will not grow in an economy where jobs have been lost and incomes or wages have been reduced,” Chidambaram argued.
“The answer to this crisis is to put money in the hands of the people, especially the poor and lower middle classes,” he said.
The Congress had on Monday claimed that the measures announced by the Finance Minister “delivered nothing but headlines” and said the government should take steps to spur demand to revive the economy “which continues to be in the doldrums”.
📣 The Indian Express is now on Telegram. Click here to join our channel (@indianexpress) and stay updated with the latest headlines
- The Indian Express website has been rated GREEN for its credibility and trustworthiness by Newsguard, a global service that rates news sources for their journalistic standards.