New Delhii: The opposition in the Lok Sabha today came down heavily on the government over the impact of demonetisation and introduction of the GST, saying the economy was in a bad shape, the growth rate had slowed down and joblessness was growing.
Initiating a debate on the Supplementary Demands for Grants – Second Batch for 2017-18, senior Congress leader M Veerappa Moily said the Prime Minister’s Economic Advisory Council (PMEAC) has “conceded that various reasons had contributed to the slowdown” of the growth rate to 5.7 per cent in the first quarter.
“It is not my allegation but admission on the part of the Economic Advisory Council,” he said.
Moily was speaking after the Congress members had staged a walk-out protesting against the Prime Minister’s remarks against Manmohan Singh.
However, Leader of Congress Mallikarjun Kharge said “we are participating (in the discussion) because it is a constitutional matter, but our agitation and walk out continues.”
Moily said both decisions of the government on demonetisation and GST “happened in quick succession” and the government should assess their impact on employment both in the organised and the unorganised sectors.
“If job creation has to take place in the organised sector, the capacity utilisation has to cross the current levels of 72-73 per cent with fresh investment which obviously is not happening right now and this is the admission on part of the Finance Ministry,” the Congress leader said.
Maintaining that India was missing out on the global revival of economic growth, he said the number of stalled projects had increased in the fifth straight quarter.
“This is the state of economy as of today and there is no symptom of growth,” he said.
Stating that country’s domestic savings rate was coming down very sharply, he said the soundness of the economy depends on domestic savings.
The crisis in the MSME sector, which contributes about 40 of GDP and constitutes more the 75 per cent of employment, should not be brushed under the carpet, Moily asserted.
Castigating the government for being pro-corporate, the Congress leader said “you say you are against black money. How much black money have you brought back?” and added that except for speeches, the government has not done anything.
He also alleged that wages for the labourers were “sometimes released but material components are not released…Wages also remain pending.”
Asserting that the Committee system should not be politicised, Moily said that “Don’t try to interfere with the Committee system. Let the Committee System work. Standing Committee have this advantage. They have the domain knowledge of the subject.”
He said major programmes like the Right to Education Act was being totally ignored and the Right to Food Act being flouted. “You don’t provide sufficient foodgrains. That is also lacking,” he said.
Saugata Roy (TMC) said demonetisation, GST, linking of Aadhaar with mobile and other things and Financial Resolution and Deposit Insurance (FRDI) Bill were the “most anti-people measures taken since independence”.
Economy has suffered as a result of demonetisation and GST, he said, adding, the first quarter growth was 5.7 per cent that marginally improved to 6.3 per cent in the second quarter of the current fiscal.
He also raised the issue of price rise saying that inflation which has gone away has started rising. Already the government has cut expenditure on social security scheme.
Besides, the condition of farmers across the country is bad as they are not getting fair price for their produce, he said citing various incidences of protest at Madhya Pradesh and Maharashtra.
Banking system was in a crisis with the non-performing assets of over Rs 8 lakh crore, he said, adding that investment sentiment was not favourable.
Criticising FRDI Bill, he demanded its immediate withdrawal saying it has been introduced “under pressure from Western masters.” The government should also withdraw linkage of welfare schemes to Aadhaar.
Murali Mohan (TDP) demanded the release of all dues by the Centre for Polavaram project and setting up of Railway zone at Visakhapatnam.
Bhartruhari Mahtab (BJD) asked the government to allocate funds for bank recapitalisation for the public sector banks which are facing the problem of mounting NPAs, while A P Jithender Reddy (TRS) suggested that Rs 1,000 crore for setting up an AIIMS in Telangana.
Mohd Salim (CPM) regretted that the government has overlooked the issue of farmers and wanted to know whether the monetary gamble of note-ban has paid off.
Kirit Somaiya (BJP) said that at a time when the whole world is showering praise on Narendra Modi, an opposition leader called him ‘Neech’ (lowly). Taking a dig at Congress for calling GST ‘Gabbar Singh Tax’, he said that Congress now left in only 5 states as against 18 earlier.
N K Premachandran (RSP) demanded a white paper on demonetisation, while criticising various economic policy measures taken by the government.
Others who participated in debate included Nityanand Rai (BJP), Jaiprakash Narayan Yadav (RJD), Bhagwant Maan (AAP), Bishnu Pada Ray (BJP), Kaushalendra Kumar (JD-U) and Dushyant Chautala (MP). (PTI)
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