New Delhi: The government is not doing enough to revive the economy, the Congress said on Monday, citing a Reserve Bank of India report which talked about credit to commercial sector dropping by 88 per cent.
Congress spokesperson Supriya Shrinate said the flow of funds has dropped to Rs 91,000 crore, which is the lowest. Because of the collapse of credit in last one year, there is no job creation, she said at a media briefing here.
“When credit goes down to less than (Rs) 1 lakh crore, it means there is no demand in the system,” she said.
Shrinate said the RBI has reduced the repo rate but the demand in commercial loan has reduced, because of which business is not growing and nobody is asking for credit.
“The banks are also not giving fresh loans. When there is low demand, then nobody will invest in any sector,” she said. The Congress spokesperson said “fault lines very visible, very deep” but the government is not doing enough to rejuvenate the economy.
Quoting former Chief Economic Advisor (CEA) Arvind Subramanian, she said the actual GDP is less than 5 percent.
The RBI has done a Consumer Confidence survey covering a period of last 6 years, which shows that 52.5 percent people believe that there will be no job creation.