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Friday, Aug 16, 2019

‘Where’s the money?’: Congress fact checks, says PM Modi’s five-trillion-economy ideal was an uphill task

Congress said the ideal of creating a five-trillion economy was not possible if current trend continued. India’s GDP needed to grow at 9% for the next five-years along with investments for it to materialize, it said.

india Updated: Aug 15, 2019 13:55 IST
HT Correspondent
HT Correspondent
Hindustan Times, New Delhi
Congress put out some statistics in four bullet points to suggest the economy hadn’t done very well in recent times
Congress put out some statistics in four bullet points to suggest the economy hadn’t done very well in recent times(HT PHOTO)
         

The Congress has dismissed Prime Minister Narendra Modi’s Independence Day speech as “grandstanding,” the party in its response said the country’s economy was in dire-straits and it wasn’t possible to reach the ideal of five-trillion-economy in the next five years with the current pace of growth. “Where’s the money?” One tweet from @INC India asked while referring to “the state of the economy & existing expenditure on infrastructure development.”

The above tweet from the Congress put out some statistics in four bullet points to suggest the economy hadn’t done very well in recent times. “Indian GDP growth between Jan-March 2019 has fallen below 5.8%”, one bullet point said, another claimed that “Gross tax revenue growth falls from 22.1% (April-June 2018) to 1.4%.”

In another tweet, Congress said the ideal of creating a five-trillion economy was not possible if current trend continued. India’s GDP needed to grow at 9% for the next five-years along with investments for it to materialize, it said.

“India’s five-trillion-economic-growth ideal can’t be achieved through present ways. GDP needed to grow at 9% for the next five-years along with a 38% growth rate for investments, for it to materialize. Our current growth rate was 6.8% while the investment rate stood at 31.3%,” the tweet said

In an earlier tweet on Thursday, Congress had also criticised the implementation of Goods and Services Tax (GST) while referring to Prime Minister Narendra Modi lauding “one-country, one-tax” regime in his Independence Day speech.

A tweet by @INC India said the GST with its 5 tax slabs was far from realising ‘one nation, one tax’ system. The tweet also claimed that “poorly implemented” GST had resulted in a “massive loss” to the economy.

“Given that GST has 5 tax slabs, “One Nation, One Tax” is far from reality. It is also our duty to remind the PM when he speaks from the Red Fort that the poorly implemented GST resulted in a massive loss to the economy & forced closure of multiple MSMEs,” the tweet read.

PM had earlier praised GST as a tax unifier introduced by his government to rationalise previous tax regimes in states and at the Centre.

“GST brought to life the dream of One Nation, One Tax. India has also achieved One Nation, One Grid in the energy sector. Arrangements have been made for One Nation, One Mobility Card. Today, India is talking about One Nation, One Election.”

Senior Congress leader and former Prime Minister Manmohan Singh had earlier in February said that the small and non-organised sectors which were vibrant and contributing to generation of wealth and employment opportunities had grievously suffered in the wake of the disastrous demonetisation and the introduction and implementation of the Goods & Service Tax (GST).”

Goods and Services Tax (GST) came into existence in the year 2016 after years of delay due to differences between the states and the Centre. Consensus on GST had also eluded political parties.

First Published: Aug 15, 2019 13:42 IST

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