In a tweet on Wednesday morning, Congress leader Rahul Gandhi said, “RBI has now confirmed what I have been warning for months.” He then made a few suggestions. “Government needs to Spend more, not lend more. Give money to the poor, not tax cuts to industrialists. Restart economy by consumption.” “Distractions through media won’t help the poor or make the economic disaster disappear,” he added. His tweet was accompanied with a news report.
On Tuesday, the RBI warned of economic contraction till September. The central bank said in its annual document that more protracted spread of the coronavirus pandemic, deviations of the monsoon from the predicted normal rains and global financial market volatility are key downside risks to growth. The pandemic has affected over 200 countries, bringing economic activity to a standstill, the RBI said.
The central bank also said that the outbreak of the COVID-19 pandemic affected the supply of notes. “The supply of banknotes during 2019-20 was also lower by 23.3 per cent than in the previous year mainly due to the disruptions caused by the outbreak of COVID-19 and the ensuing lockdown,” the report said.
The central bank’s annual report comes days ahead of the release of official data on GDP for the quarter ended June 30. Rahul Gandhi has been relentlessly attacking the government on social media over the handling of coronavirus pandemic, which has badly affected the national economy.
The ruling party, however, has dismissed the Congress leaders’ claims. Last week, BJP chief JP Naada lashed out at Rahul Gandhi, describing him as “the prince of incompetence”, calling him a “loser” and accusing him of “spreading fake news” over his attack on PM CARES Fund, set up by the centre to help raise money for combating Covid outbreak.