Cong terms budget 'direction-less'; says no proposal to propel

Congress today termed the Union Budget as "direction-less" and "deeply disappointing", adding that it has no proposal to accelerate manufacturing or job creation to propel growth.
Congress spokesperson Anand Sharma said the figures provided by the government in the budget were "doubtful" as the projections made are based on only six to seven months and the effect of demonetisation has not been accounted for.
"The budget is lacking in direction and has no proposals for accelerating manufacturing or job creation. This budget as such, which was preponed for narrow electoral gains and to influence voters, thereby undermining fairness of forthcoming elections in five states, has deeply disappointed everyone-be it the investors, farmers and youth," he told reporters.

Sharma said the fundamentals are nosediving and there is fall in demand and consumption, a historic low investment rate and the credit off take for industry is at 20-year low.
The former Union Commerce minister said the capital formation was negative in real terms and there was non-utilisation of existing industrial capacity, upto more than 33 per cent, adding that job losses are in millions after demonetisation.
"There are no incentives, none to promote investment, which have touched historic lows in both private and public sector. Unless you incentivise, words are hollow and meaningless," he said.

Sharma said the figures given by the government were "doubtful" as this time the projections for the full financial year have been based on the data of six months.

"It is therefore, unconvincing and completely lacks credibility," he said.
The senior Congress leader said the government did not have the resources which it was claiming, despite the fact that banks were flush with funds, the money "forcibly taken" from people in a country that lacks basic banking facility in over 65 per cent of its villages.
"Government has failed to give any account of the effect, the job losses, the loss of wages and incomes, and loss of personal income which had prompted the International Monetary Fund to reduce India's GDP by one percentage point.
"The government's admission of one per cent fall in GDP is wrong because it is only taking into account less than 45 days post demonetisation. The after-shocks will be severe and the fall in GDP will be much more. It is bad for the country's economy and the recovery will be painful and slow," he said.

Sharma noted that the "government lacked credibility" when it came to electoral reforms, and called for the creation of a central election trust to enable state funding of polls, especially after demonetisation.