On Wednesday, after the Reserve Bank of India published a report of the economic contraction of the country due to the novel coronavirus, Rahul Gandhi hit out at the central government for the negligence.
The member of parliament from Wayanad, Rahul Gandhi took to Twitter and said,
“RBI has now confirmed what I have been warning for months. The government needs to spend more, not lend more. Give money to the poor, not tax cuts to industrialists. Restart economy by consumption. Distractions through media won’t help the poor or make the economic disaster disappear.”
RBI Calls For Reforms
On Tuesday, in the report, the Reserve Bank of India cited the reasons for restrained new investments into the country. The reasons included declining capacity utilization, weakening of consumer demand, and the overhang of stressed balance sheets. The Reserve Bank also called for widespread reforms which will help the country rebuild the damage caused by the novel coronavirus pandemic. It also said that the corporate tax cut of September 2019 has now been utilized in debt servicing. It called for a build-up of cash balances and current assets instead of restarting the capital expenditure cycle. In the annual report of 2019-20, it said,
“These underlying developments suggest that the appetite for investment is anemic and in need of more reforms.”
The report also spoke about the possible reforms that might be introduced which will have a bearing in the long run. It said that the novel coronavirus pandemic crisis should be looked at as an opportunity to push the online provision of education and training. It also said various reforms in the social infrastructure skill development can be introduced I this period.
The number of coronavirus cases in the country has crossed 32 lakhs with 24 lakh recovered and over 7 lakh still receiving treatment. Over 59 thousand have lost lives in the pandemic.
Source: Free Press Journal
