New Delhi
Congress on Wednesday castigated the Centre over the latest RBI bulletin for October 2023, saying it shows extremely concerning economic trends and demonstrates the Narendra Modi government’s continuing mismanagement of India’s economy.
While Prime Minister Narendra Modi lectures others on ‘revdis’ (freebies), his government’s fiscal deficit is ballooning as it has grown by almost 20 per cent over the past year, to over Rs 6.4 lakh crore in Q1 of 2023-24, it added.
In a statement, Congress general secretary Jairam Ramesh flayed the government saying that the RBI bulletin of October 2023 shows extremely concerning economic trends and demonstrates the Modi government’s continuing mismanagement of India’s economy.
Recalling the September 2023 bulletin, he said a range of negative indicators were revealed, including a 47-year low in the savings growth rate, a stagnation of domestic credit to the private sector, and a flat labour-force participation rate.
He further said that these trends either remain or have worsened.
A major reason for the low net savings growth is that there was a huge spike in household liabilities. Despite the Finance Ministry’s misleading claim that this spike is due to home and vehicle loans, the September bulletin had clearly shown there was a 23 per cent spike in gold loans and a 29 per cent spike in personal loans, Ramesh, who is also party’s communication in charge, said.
He said that the October RBI bulletin confirms the fact that personal loans were the single largest contributor to bank credit growth in August 2023, and grew at a massive 23 per cent, while gold loans grew at 22 per cent.
