The latest stimulus package announced by the Central government fails to constitute a blueprint for economic revival, without any significant hikes in government expenditures or direct cash transfers to the people, the CPI (M) Polit Bureau said in a statement here.
The CPI (M) said that the government’s claim that the stimulus packages announced in three instalments is equal to 15% of the GDP is wrong. “The reality is that the sum total of direct extra governmental expenditures is, by liberal estimates, ₹3,72,295 crores, or a mere 1.9% of the GDP. This is a measly stimulus compared to other major economies in the world who have provided 10 to 15% of their GDP,” the statement said.
For the real picture to emerge, the CPI (M) said, the Finance Minister must tell the country what is the amount being spent by the government over and above the budgetary estimates of expenditures.
“Coming a day after the RBI’s severe indictment that the Indian economy is in a deep recession for the first time in history, this announcement fails to constitute a blueprint for economic revival,” the party said.
CPI General Secretary D. Raja also said that the government should not live under “illusions and falsehoods”. “First, they need to admit, even before the COVID-19 pandemic struck, Indian economy was sick and sinking. The so-called announcement once again is targeted to help the corporate houses. There is nothing in the package to address the problems of unemployment,” Mr. Raja said.
