Budget must address fundamental questions, why is private investment very sluggish: Congress
The Hindu
Congress questions sluggish private investment and consumption in upcoming Budget, dismissing claims of accelerating economic growth and job creation.
The Congress on July 12 said the forthcoming Budget must address fundamental questions such as why private investment is "very sluggish" and private consumption is not picking up as the party dismissed claims that economic growth is accelerating sharply and large numbers of jobs being created.
Union Finance Minister Nirmala Sitharaman is scheduled to present the Budget for 2024-25 in the Lok Sabha on July 23.
Congress general secretary, in-charge communications, Jairam Ramesh said, “The non-biological PM’s cheerleaders and drumbeaters claim that economic growth is accelerating sharply and that jobs are being created in large numbers. But if this was the case — and it is not — Why is private investment, a key engine of economic growth, still so very sluggish recording a 20-year low during April-June 2024? Why is private consumption, another key engine of economic growth, not picking up except at the high end,” Mr. Ramesh asked.
"Why have household savings plummeted to record lows and household debt shot up to record highs? Why have rural wages continued to fall and why is the wage share of national income declining?" he said, adding, why is manufacturing as a share of GDP at a record low and still decreasing? Why has the informal sector lost 17 lakh jobs in the last seven years? Why did unemployment reach a 45-year peak, with unemployment for young graduates at 42%?" the Congress general secretary said.
"These are fundamental questions that the forthcoming Budget will have to address while the Finance Minister sings praises of the non-biological PM," Mr. Ramesh said.
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