Despite accelerated govt capex, not all economic engines firing at same speed: Jairam Ramesh

PTI, Aug 8, 2024, 6:28 PM IST

All engines of economic growth are not firing at the same speed even though the government has accelerated the capital expenditure, Congress MP Jairam Ramesh said on Thursday in Rajay Sabha, criticising the Union Budget.
Participating in a discussion on the Budget, Ramesh said while the government has accelerated the speed of its capital expenditure, private investment was not picking up.
“Not all engines of growth are firing at the same speed. Finance minister has accelerated the speed of the government capital expenditure engine, but the private investment engine is not growing. It’s not going fast,” he said.
He further said private consumption and exports engines too are not growing at a fast pace.
V Vijayasai Reddy of YSR Congress said that stock market investment has been disincentivised in the budget.
He also said that Rs 8,495 crore fines collected by public sector banks for not maintaining minimum required balance in accounts should be refunded to customers.
Reddy also requested the finance Minister to make saving bank accounts zero-balance accounts across the country.
Carrying the debate forward, Congress member Vivek K Tankha said that the government has erred in its judgement on budget as the middle class has been completely ignored.
He said that the government’s internship scheme will not be successful.
He also said that the fertiliser subsidy has been reduced by Rs 1 lakh, therefore the budget is not pro-farmer.
Tankha further said the railway budget has disappeared.
“More than 6,800 train stations were shut down citing financial viability. Many artisans, small vendors, micro businessmen, and students are all affected. The concept of cheap public sector transport is not to gain profit but for a larger social good,” Tankha said.
Trinamool Congress member Dola Sen asked the government to withdraw the 18 per cent GST on life and medical insurance premiums.
According to AAP member Sanjay Singh, the government always says it has no money whenever farmers, students or vendors demand waiver of their loans.
DMK’s Kanimozhi N V N Somu urged the central government to suggest the GST Council to bring all important medical and laboratory equipment as well medicines under zero rate of GST.
John Brittas of CPI (M) claimed that “states are being relegated and the principles of federalism are being scuttled”.
In 2019-20, he said, the total cess and surcharges collected by the Centre stood at Rs 2,54,544 crore, which went up to Rs 5 lakh crore in 2023-24.
“… that means the revenue of the Central government in the form of cess and surcharges increased by 96 per cent,” Brittas said.
He urged the government to declare the Wayanad landslides as a calamity of severe nature.
“There is a natural calamity that has struck Kerala… there is a provision in national disaster management policy to declare it as a calamity of severe nature. Why they are not doing it. I would request the government. The prime minister intends to visit Kerala. Let him declare the Wayanad calamity as a calamity of severe nature. If he is not doing it, you don’t have a cause to share with Kerala and I would say that you will continue to be anti-Kerala,” Brittas said.