Congress asks Modi govt to issue white paper on economy, after RBI transfers ₹1.76 lakh cr to govt

The Congress on Tuesday slammed the BJP government over the Reserve Bank of India (RBI) transferring Rs 1.76 lakh crore in dividend and surplus reserves to the government and asked it to release a white paper within a week on the economy.

Addressing a press conference at the party headquarters, Congress leader Anand Sharma said: "India is in a deep financial crisis. The economy is in shambles. All indicators of development are low. And India's GDP is continuously falling."

Sharma said the last quarter of 2018-19 showed an increased gross domestic product (GDP) at 5.8%. But the current financial year's first quarter for which final figures would be out on August 30 was projected to be at 5.6%, the "least" in seven years

Sharma, the Deputy Leader of the Opposition in the Rajya Sabha, said the index of industrial production was at 2% and for manufacturing, at 1.2%.

"The Indian Rupee has lost 4% of its value and is currently Asia's worst performing currency," he said.

He said that unemployment was at 8.2% while in reality it was more than 20%.

"Any economist can verify that. Industries are in danger, be it automobile sector or others. People are not even getting loans and hence demand is low," he said.

Slamming the government, Sharma said: "The government decided that RBI's excess, known as Contingency Risk Buffer (CRB), be given to government. No central bank hands over its risk buffer to the government."

"But RBI, on the recommendation of (Bimal) Jalan committee, decided to hand over ₹1.76 lakh crore to the government in one go," the Congress leader said.

He said Jalan had earlier said that the amount would be transferred to the government in instalments over a period of 4-5 years. Instead, it was given at one go.

"This confirms India's deep economic and financial crisis."

Sharma pointed out that the difference between the government budget and Economic Survey was ₹1.7 lakh crores and they had taken ₹1.76 lakh crore from the RBI.

"The government made a wrong budget, it's in loss. That's why they snatched RBI's money and pushed the country towards an economic emergency," he said, adding that it all happened due to the mismanagement of economy.

He asked the government to issue a white paper on the economy within a week.

His remarks came day after the Central Board of the RBI accepted the Bimal Jalan panel recommendations and decided to transfer ₹1.76 lakh crore in dividend and surplus reserves to the government.