Financial emergency in country, says Congress; demands white paper on economy     

A day after Reserve Bank of India (RBI), in its annual report said that bank frauds have increased by 75 %, Congress lashed out at Modi government for destroying Indian banking system and demanded white paper on the economy on Friday. Saying that that there is a “financial emergency” like situation in the country, Congress spokesperson Professor Gourav Vallabh blamed Modi government for “systematic decimation of the economy”.

Addressing media at the Congress headquarters, Vallabh said that slowdown is an outcome of the demonetisation. Attacking the finance minister for saying “slowdown is seasonal”, Vallabh argued, “Had this government been able to control bank frauds, they would not have needed RBI reserve fund.”

“Frauds lead to recession and recession to job loss. Our economy has been witnessing recession for four consecutive quarters…Financial emergency has come in the country. Natural recovery does not occur, and we have to rely on monetary policy actions only,” he added. Another Congress leader Jaiveer Shergil said, “Bank frauds have increased by 74%, GDP is at a 5-year low, industries like Parle G and automobile are dissolving like a biscuit in a teacup, jobs are evaporating faster than acetone, but BJP is aloof to the fatal crash we are headed towards.”

Asking Modi government to tell the nation, how it will tackle the “worst economic scenario” Congress raised following questions in the conference:

• What is the government’s response on the prolonged reduction in growth?
• Does the government have any clue of what is actually wrong and who is responsible for the same?
• Why can’t government accept that we are going through economic recession and it will be only revived when private and public investment cycle starts in the economy?