Why were bank loans worth Rs 5.8 lakh crore written off and why was corporate tax worth Rs 1.45 lakh crore reduced, the Congress asked on Friday while attacking Prime Minister Narendra Modi over his remarks for ending the freebie culture. When will there be a discussion on bank loan waivers to big corporates and the decrease in corporate taxes, Congress spokesperson Gaurav Vallabh asked.
Of the Rs 9.92 lakh crore loan written off by banks in the last five years, Rs 7.27 lakh crore is the share of public sector banks, he told reporters. The government, he added, has admitted in an answer in Parliament that only Rs 1.03 lakh crore was recovered of the amount written off by it. Assuming that the recovery from the written-off loan will increase to 20 percent in the coming time, public sector banks have not recovered the loan of Rs 5.8 lakh crore, Vallabh said.
“When will there be a discussion on freebies given by the public sector banks of Rs 5.8 lakh crore in the last five years?” Posing a series of questions, he also wondered when there will be a discussion on the loss of Rs 1.45 lakh crore per year to the government due to the reduction in corporate tax rates.
“Why are small amounts or assistance given to the poor freebies (rewri), while the freebies that the rich friends get all the time through low tax rates, write offs and exemptions are ‘necessary incentives’ (gajak)?” He cited schemes such as Food Security Act, MSP to farmers, MGNREGA and midday meal that had provided relief to the poor during tough times.
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Vallabh reminded the Modi government about its promises for 2022 – including that every Indian will have a house by 2022, farmer’s Income will double by 2022, bullet train will be operational by 2022, the economy will be worth USD 5 trillion. “How and when will this culture of false promises end? Is the PM going to give new deadlines of promises made for the year 2022 using smoke and mirrors culture?” Vallabh asked.