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Regular-article-logo Wednesday, 24 April 2024

PPF rate cut stupid: Congress

Surjewala raised the issue of the export of personal protection equipment

Our Special Correspondent New Delhi Published 01.04.20, 10:45 PM
“While reducing the interest rate on PPF and small savings may be technically correct, it is absolutely the wrong time to do so. In times of acute distress and uncertainty about income, people depend on the interest income on their savings,” former finance minister P. Chidambaram tweeted.

“While reducing the interest rate on PPF and small savings may be technically correct, it is absolutely the wrong time to do so. In times of acute distress and uncertainty about income, people depend on the interest income on their savings,” former finance minister P. Chidambaram tweeted. (PTI)

The Congress on Wednesday described as “stupid” and “heartless” the decision to cut PPF and small savings interest rates and questioned the reported move to export personal protection equipment at a time Indian healthcare staff weren’t adequately protected against infection.

“While reducing the interest rate on PPF and small savings may be technically correct, it is absolutely the wrong time to do so. In times of acute distress and uncertainty about income, people depend on the interest income on their savings,” former finance minister P. Chidambaram tweeted.

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“Government must reconsider immediately and restore old rates until June 30. I know that sometimes government acts on stupid advice, but I am amazed how stupid this advice was!”

Chidambaram also questioned the government’s priorities, saying: “After the three quarters’ growth rates of 5.6, 5.1 and 4.7 per cent, the fourth quarter of 2019-20 ended yesterday. Q4 growth could not have been more than 4 per cent.

“So annual GDP for 2019-20 must be a disappointing 4.8 per cent. In my view, we should not worry about growth now. The focus should be on saving people’s lives whatever it takes. That is why I am appalled that the government has not yet announced the second financial aid package after the miserly and disastrous FAP of March 25.”

At a news conference later, party spokesperson Jaiveer Shergill described the government’s decision to lower the interest rates on small savings schemes as “heartless” and “illogical”.

“It is like rubbing salt on the wounds of the depositors, who are going through a phase of economic grief. Instead of providing relief, the government has issued a ‘warrant of loss’. It is a ‘stealing touch’ in place of a ‘healing touch’.”

Party communications chief Randeep Surjewala raised the issue of the export of personal protection equipment (PPE).

“Prime Minister, our doctors, nurses, health workers and corona(virus) patients are in crying need of PPEs. In fact, they are constrained to use raincoats and helmets as protective cover. Why not a nation -and-people-first policy?” he said.

Senior Congress politician Ajay Maken referred to a photograph that purportedly shows a planeload of PPEs bought by the Serbian government from India.

“This is the second instalment of 90 tonnes’ cargo of ‘medical protective equipment’ from India reaching Belgrade on March 29. No doubt, there is a global shortage of PPE.... But the doctors and staff in the hospitals of India are also struggling,” he said.

Congress president Sonia Gandhi wrote another letter to Prime Minister Narendra Modi, her third in quick succession, seeking “immediate advance payment of wages for 21 days” to rural job scheme workers.

“Since its inception, the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) has been a critical lifeline for the rural poor, particularly during periods of chronic economic distress,” she wrote.

“Lakhs of agricultural workers have been left unemployed during the crucial harvesting season. Devoid of an alternative source of income, an increasingly large number of the rural poor are expected to demand work under MGNREGA. However, social distancing norms have rendered all work unfeasible during the lockdown.

“Even after the work commences, workers have to wait for more than a month to receive wages. Given the urgency of providing income support to the rural poor, due to lost wages, the government may consider immediate advance payment of wages for 21 days to registered and active MGNREGA workers. The advance wages may be adjusted against the work to be done by the workers once MGNREGA sites are opened up.”

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