FM's 'khata khat' remark: Cong accuses her of overseeing peak unemployment

The Congress on Tuesday hit back at Finance Minister Nirmala Sitharaman for questioning the finances behind the Congress' poll guarantees of providing Rs one lakh per annum to poor women and youth of the country and accused her of overseeing record unemployment and price rise.

In a post on X, Congress general secretary Jairam Ramesh said while Sitharaman considers the Congress guarantees benefitting 99 per cent population as "lofty" but not the Rs 16 lakh crore loan write off for the prime minister's "cronies" or a Rs 2 lakh crore corporate tax cut for 0.7% of the largest firms that went straight into his "friends'" pockets.

He asserted that the schemes promised by the Congress will be properly executed by the INDIA bloc government starting next month.

"It is typical of the Modi government to describe only those policies intended to benefit 99% of the population as 'revdi', while billions handed out to the PM's cronies are excluded from this category.

"The good news is that these anti-people policies will come to an end on 4 June 2024. INDIA jeetega aur Bharat badlega," Ramesh said in his post.

He said Sitharaman has questioned the feasibility of the Congress' historical Nyay Patra manifesto, describing its practical proposals as "lofty promises" that could be fiscally expensive.

Never mind that in the past two decades, GDP growth, investment and job creation were all higher under the UPA than under the NDA, he said, adding that the UPA ended its tenure with a lower fiscal deficit and national debt (as a per cent of GDP) than the Modi government.

"This was the same scaremongering the BJP unsuccessfully did in 2004, after which the UPA took office and delivered India's best economic performance ever. That too despite the 2008 global financial crisis, which was the biggest shock to the global economy since the 1930s. President Barack Obama has stated that Prime Minister Manmohan Singh 'was the primary partner while we were working during the financial meltdown'," the Congress leader claimed.

Ramesh said it is no surprise that the Sitharaman considers necessary schemes like Mahalakshmi (Rs 1 lakh to every poor household) or Pehli Naukri Pakki (Rs 1 lakh apprenticeship to every graduate or diploma holder under 25) as "lofty". After all she has overseen record unemployment and price rise, including a 13-month high in wholesale inflation in April. She is known to have brushed off skyrocketing food prices with insensitive remarks such as "I don't eat onion", he said.

He further said, "What is not 'lofty' for her is a Rs 16 lakh crore loan write off for the PM's cronies or a Rs 2 lakh crore corporate tax cut for 0.7% of the largest firms that went straight into his friends' pockets and led to no new investment even as MSMEs suffered."

Sitharaman had on Monday wondered whether the Congress is aware of the cost of implementing the social welfare schemes, including giving Rs 1 lakh to women belonging to the below poverty line families.

A lot has been said in the recent times about the fiscal management (especially on debt) of our government under Prime Minister Modi's leadership, Sitharaman said in a post on X.

"Many times, absolute numbers have been compared without considering the GDP growth on which we base the debt calculation. I would like to put out a clear picture, unlike @INCIndia, which hides behind lofty promises that are non-transparent and disconnected from reality," she said.

"Has @INCIndia considered the cost of the lofty promises made in their manifesto? Have they calculated how much the 'Khata Khat' schemes will cost fiscally? Will they borrow substantially for them, or will they raise taxes to fund them?" she said.

Sitharaman also wondered how many welfare schemes would Congress leader Rahul Gandhi shut down to accommodate the fiscal cost of the "khata khat" schemes.

Last month, while addressing a poll rally, Rahul Gandhi made a poll promise saying that the party will transfer Rs 1 lakh in the account of one woman from every poor household in the country if they win the elections.

"Would @RahulGandhi care to answer these real questions and explain how their gigantic schemes of fiscal splurge would work without increasing taxes or borrowing heavily and running down the economy? Here's a challenge to him to answer these questions for the people of India," she had said.