Mumbai: Congress leader Rahul Gandhi on Wednesday attacked the government over the state of the economy and said that there is a need to give money to the poor to restart the economy through consumption.
Gandhi said “distractions” through the media won’t help the poor or make the “economic disaster disappear”.
“RBI has now confirmed what I have been warning for months. The Government needs to: spend more, not lend more,” Gandhi said.
“Give money to the poor, not tax cuts to industrialists. Restart economy by consumption,” the former Congress chief tweeted.
RBI has now confirmed what I have been warning for months.
Govt needs to:
Spend more, not lend more.
Give money to the poor, not tax cuts to industrialists.
Restart economy by consumption.
Distractions through media won't help the poor or make the economic disaster disappear. pic.twitter.com/OTDHPNvnbx
— Rahul Gandhi (@RahulGandhi) August 26, 2020
The Reserve Bank of India (RBI) said on Tuesday that their attack on the government would take a long time to reduce demand in the economy and that estimating aggregate demand during the year shows that the consumption shock is serious.
In its latest annual report, the RBI said that “deep-seated and comprehensive-” reforms are needed to recapture the losses and return to the path of sustainable economic growth.