Govt's decision of taking Rs 1.76 lakh cr from RBI reserves catastrophic: Cong

The Congress on Tuesday termed the government's decision of taking Rs 1.76 lakh crore from RBI reserves "catastrophic" and accused it of thrusting India's economy towards bankruptcy and an economic emergency.

Congress spokesperson Anand Sharma demanded that the government brings out a white paper on the state of Indian economy within a week and release data on projects underway and investments in public and private sectors together with the actual factory output.

He also demanded a report on the country's export scenario and the credit offtake by Micro, Small and Medium Enterprises (MSMEs), and the agriculture sector within two weeks.

The Congress reaction came a day after the Reserve Bank of India (RBI) approved the transfer of a record Rs 1.76 lakh crore dividend and surplus reserves to the government, boosting the BJP-led regime's prospect of stimulating the slowing economy without widening fiscal deficit.

Critical of the government's move to take money from the RBI reserves, Sharma said the difference in revenue between the government budget and economic survey is Rs 1.7 lakh crore and the dispensation has taken away Rs 1.76 lakh crore from the central bank.

"The government made wrong budget, it's in loss. That's why they snatched RBI's money and pushed the country towards an economic emergency," he told reporters.

"It is a catastrophic decision. The government has done it out of sheer desperation. Its follies have brought the Indian economy to ruins," the Congress spokesperson said.

Sharma said the Jalan Committee had earlier said the amount will be transferred to the government in instalments over a period of 4-5 years.

"Instead, it was given in one go. This confirms India's deep economic and financial crisis," he said.

Sharma said the government decided that the RBI's excess money, known as Contingency Risk Buffer, be given to it.

"No central bank hands over its risk buffer to the government, but the RBI on the recommendation of the Jalan committee, decided to hand over Rs 1.76 lakh crore to the government in one go.

"India is in a deep financial crisis. The economy is in shambles, all indicators of development are low. India's GDP is continuously falling," he said, lamenting that the government is thrusting India's economy into "financial bankruptcy".