India News | FM's Revival Package Will Not Result in Any Meaningful, Durable Push to Economic Activity: CPI

New Delhi, Oct 13 (PTI) The CPI on Tuesday hit out at Union Finance Minister Nirmala Sitharaman's recently announced revival package, terming it "a move to hoodwink people".

The party issued a statement saying that the finance minister's announcements on October 12 were aimed to divert the attention of the people from the government's failures.

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"CPI terms the announcement of a set of measures by Union Finance Minister Nirmala Sitharaman on October 12 for reviving consumption and investment activity in the economy as nothing but a move to hoodwink the people from the real problems facing the people and country.

"The party is of the firm opinion that the package will not result in any meaningful, durable push to economic activity. The economy is in shambles and any piecemeal approach to boost consumer sentiments is in fact aimed at hoodwinking the total failures of the Modi government in solving the burning problems of the people and country. The Finance Minister has again come out with some cosmetic announcements," the statement said.

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The party went on to allege that the real problem for lack of demand is that people do not have money, and instead of boosting employment, the government policies are only reducing the existing employment in the country.

"Cash voucher scheme, often used as a measure by corporate houses to please the employees, with the numerous restrictions imposed will not enthuse the people in any way to spend. This is not putting money into the hands of the people and is only fooling people.

"The party is of the view that on the eve of Bihar assembly elections, the government only wants to show that it is concerned. In fact, it is doing nothing to arrest the rising inflation, create more jobs and put money into the hands of the people," the statement added.

Nirmala Sitharaman on Monday announced a payment of cash in lieu of LTC and Rs 10,000 festival advance to government employees to stimulate consumer demand during the festival season and boost the economy.

She also announced additional capital spending and Rs 12,000 crore, 50-year interest-free loan to states to boost the economy that has been battered by the pandemic and the resulting lockdown.

At a news conference, she said the government will give its employees income-tax-exempt cash vouchers in lieu of their entitled travel allowances this year.

This cash will have to be spent on buying goods that attract 12 per cent or more GST -- a condition which eliminates the possibility of the cash being spent on food items.

Central public sector enterprises and banks will also follow the cue and give cash in place of leave travel concession (LTC) as travelling during the pandemic is near to impossible.

Additionally, the government will as a one-time measure give Rs 10,000 salary loan to all its officers and employees as festival advance.

These two measures are "expected to create a consumer demand of about Rs 28,000 crore", she said.

The government, which had in May announced a Rs 20 lakh crore 'Aatmanirbhar Bharat' stimulus, is pushing ahead with a full opening to try to boost the economy ahead of the usually high-spending festival season.

A tough lockdown imposed to stem the spread of coronavirus had resulted in the economy contracting by a record 23.9 per cent during April-June.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)