We are into recession, declare financial emergency: Congress to Modi govt

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Updated: August 30, 2019 6:35:51 PM

This comes on a day the government announced the GDP number of the first quarter of 2019-20. The growth rate has now come down to 5 percent in Q1. In the last five quarters, the growth rate has consistently fallen from 8 percent last year to 5.

indian economy, india gdp, gdp growth, financial emergency, congress, economic slowdown, economic growth, india growth, india gdp growthThe Congress today said that recessionary conditions have persisted for several consecutive quarters but the government was not taking any concrete steps to deal with it. (IE)

The Congress on Friday demanded the central government to declare financial emergency in the country as the growth rate of the economy was consistently falling. It said that the country was heading towards a major recessionary phase. “This is a classic case of recession under expansionary trends, i.e., whenever there are 3 continuous quarters of growth recession (reduction in growth quarter on quarter), the chances of slipping into a full-blown recession is significantly higher,” it said. This comes on a day the government announced the GDP number of the first quarter of 2019-20. The growth rate has now come down to 5 percent in Q1. In the last five quarters, the growth rate has consistently fallen from 8 percent last year to 5.

The party today said that recessionary conditions have persisted for several consecutive quarters but the government was not taking any concrete steps to deal with it. The Congress demanded the government to issue a white paper on the economy, release the name of fugitives and declare a financial emergency.

The Congress hit out at the government over the recent numbers of banking frauds and said: “Why suddenly now so many cases of frauds are out? Is it an indirect way of looting taxpayers money?” It said that the credibility of the Indian banking system and economy has eroded and destroyed under the current dispensation.

In a press statement issued today, the Congress said that frauds in the banking system have shot up by 74 per cent to Rs. 71,543 crore in 2018-19 compared with frauds worth Rs 41,167 crore in 2017-18. “The RBI data has revealed that 27,125 cases of bank frauds of a whopping Rs 1.74 lakh crore (Rs 1,74,753Cr) were reported, in the past five years in various banks. Do this amount similar to Recapitalization of Banks?” it asked.

The party claimed that all frauds are taking place in such a clean manner that no substantial recoveries can be made against it. “…this is worst time Indian Banks are facing as far as the fraud risk is concerned. All these frauds of the last 5 years constitute around 6.25% of the budget size of 2018-19 and are directly pushing the economy under recession and in turn affecting Job Market,” it said.

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