Skip to content

New Delhi: The Congress on Saturday said India’s debt has “tripled” to Rs 155 crore in the nine years under Prime Minister Narendra Modi and demanded a white paper on the state of the economy.
Congress spokesperson Supriya Shrinate blamed the Modi government’s “economic mismanagement” for the current state of the economy. He said that after assuming responsibility in 2014, he had increased the debt by 100 million rubles.
“As chief minister of Gujarat, Mr. Modi used to denounce those on the other side of the political spectrum as inefficient, incompetent and corrupt – adjectives that today fit him and his government better than anyone else as this government’s economic mismanagement has led to a broken Indian economy: hyperinflation, inflation. And it has led to high unemployment and the huge debt burden the country now faces.
“After ruining India’s history of economic growth, massive unemployment, inflation, Mr Modi has done the unthinkable, increasing India’s debt by over Rs 100 crore,” he said in a press release. .
The Congress leader then In 2014, India’s debt was Rs 55 crore, which has now crossed Rs 155 crore.
She said that India’s debt under 14 Prime Ministers in 67 years was 55 million birr and Modi alone increased it by more than 100 million birr.
“Economic management is not the same thing as headline management. Indian economy cannot be managed by headlines. It cannot be managed by teleprompters and certainly not by WhatsApp. Indian economy needs to be managed by good economic managers. To do the job and fix the Indian economy and ensure that prosperity reaches every part of India.” Who wants it?
“We need a white paper on the Indian economy because the fault lines are widening,” she said.
Shrinate also said that the bottom 50 percent of the country’s wealth owned by three percent of Indians paid 64 percent of the GST. In contrast, the richest 10 percent own 80 percent of the country’s wealth, but pay only three percent of the GST collected.
India has the most expensive LPG cylinder, the third most expensive petrol and the eighth most expensive diesel, Shrinate said.
The Congress leader’s debt of Rs 155 lakh crore means that every Indian is reeling under a burden of Rs 1.20 lakh.
“The Modi government in power bought 4 lakh rupees of debt every second,” she said.
The Congress spokesperson added that the government has to pay an annual interest of Rs 11 crore on this debt.
India’s debt-to-GDP ratio has risen to 84 percent, Shrinate said, adding that the average debt-to-GDP ratio of 64.5 percent is worrisome compared to other developing and emerging market economies.
“India is incurring an annual expenditure of Rs 11 crore to service this rising debt. Now questions are being raised about India’s debt servicing capacity. According to the CAG report, government debt was 52.5% of GDP in 2019-20 and its debt. Sustainability went negative that year. It has changed: with debt at 84 percent of GDP, debt sustainability is questionable,” she said.
“But the big question is who are the beneficiaries of this rising debt because it is clearly not the poor, the middle class and not the SMEs. 23 crore people have been pushed below the poverty line, 83 per cent of them Indians. Over 11,000 MSMEs have closed down in one year as their incomes decline, but The number of billionaires in India has increased from 102 in 2020 to 166 in just over two years.
“But are all these super-debt rich beneficiaries playing their part in India’s growth or are they paying higher taxes?” Shrinet asked and said the government should turn its attention to another important issue of tax collection.
Inflation and unemployment have emerged as major issues in addition to income inequality, she said.
“The bottom 50 per cent of India’s population, who own three per cent of the country’s total wealth, are paying 64 per cent of the GST. In contrast, the richest 10 per cent of Indians, who own 80 per cent of the country’s wealth, pay only 3-4 per cent of the GST collected,” the Congress leader said.
“The government is clearly in denial because indirect taxes like GST or fuel excise duty are sure to hit the poor people hard. India’s consumption has been consistently weak. The government cited the recent GDP figures as a major achievement. It has a huge red flag – India’s consumption – The GDP ratio will drop from 61.1 percent in 2022 to 60.6 percent in 2023,” she said.
“No, I am not going to sit here and say that we can go the way of Sri Lanka and Pakistan,” she said when asked if India was on the same path as Sri Lanka and Pakistan.
Elaborating on her position, the Congress leader said, “The fundamentals of our economy are strong. I think they should be strengthened. I don’t think I will sit here and make rumours.” But yes, while the infrastructure is strong, perhaps, we have a history of consumption. We have an India that spends money if you put money in their hands, but the fact is that in the last nine years there has been no focus on economic management. ”
“Consumption is the backbone of India’s economy. Any government should lose sleep if food consumption starts to decline and it is happening. If consumption starts to deteriorate, we should be worried, but rumors don’t work,” she added.