On 2nd June 2021 Former Finance Minister Mr. P. Chidambaram has criticized Union Government over implementation of GST and Twitted his ten point guide to understand GST implementation. In Reply to this Shri Anurag Thakur, Union Minister of State for Finance & Corporate Affairs has twitted his reply as follows:-
Dear Sh P Chidambaram ji,
Is the Indian economy an island in isolation; have other major economies not faced a GDP contraction?
France, Germany, Italy, UK contracted by 8.2%,4.9%,8.9% & 9.9% Canada, Russia, South Africa, USA too have seen GDP contraction in the past year.
Consistent reforms and strong fundamentals ensured India had a swift rebound from a contraction of 24.4 % in the 1st quarter of FY 2020-21 to a growth of 1.6 per cent in the 4th quarter of FY 2020-21.
While you doubt the resilience of Indian entrepreneurs, small businesses, traders and MSMEs to revive themselves;
Various international agencies project India to grow by 12.5% in FY 2021-22 making us the ONLY major economy to have a projected double digit growth.
Only an Ostrich would deny this graph is V shaped.
I urge you to shift gears from the gloom & doomsday prediction, here are hard facts.
Lockdown saved lives, gradual unlocking allowed green shoots.
Rs 1.44 Lk cr GST collection – the highest ever till date – corroborates this.
We recorded growth in passenger vehicle sales, 2- wheeler sales, oil consumption, steel production, cement production, international air cargo amongst other areas.
High-frequency monthly core sector data also shows that the 8 core industries were seeing a rebound.
Index of Eight Core Industries grew 11.4% in March 2021 and a staggering 56.1% in April 2021.
Latest GDP data shows manufacturing sector grew 6.9% in Jan-March 2021 quarter, construction grew 14.5%,
Steel & Cement grew 27.3% & 32.7% (Mar 2021)
Impt to note,since ths growth is over & above pre-lockdown period of March 2020. The two sectors grew 400% & 549% in April 2021.
Let’s go by Data & Facts, NDA Vs UPA
NDA 2014-19, GOI disbursed Rs 8 lk crore on procurement of wheat & rice Vs Rs 3.74 lakh crore during UPA 2009-14.
Modi government purchased 74 times more pulses at MSP than that procured during UPA 2009-14.
NDA procured 306.9 million tonnes of paddy and 162.7 million tonnes of wheat in last 5yrs Vs UPA 2009-13 procured 176.8 million tonnes of paddy & 139.5 million tonnes of wheat.
UPA protested Agri Laws,yet today India recorded highest ever Wheat procurement 405LMT.
4% higher thn 390 LMT in RMS 2020-21.
KMS 2020-21 Paddy procurement touched high of 789LMT. 8th instalment of PMKISAN via DBTs provided Rs 19,000 cr. Does this not give farmer “cash in hand”?
By opening 42cr Jan Dhan a/c Modi Govt stopped systematic leakages & ensured every ₹ reaches its intended beneficiary swiftly, even during the #COVID19 pandemic via DBTs – providing financial empowerment.
Let me remind you that DBT’s were also given under NSAP to widows, divyangs, senior citizens, under BoCW to building & construction workers, front loaded PM-KISAN for farmers, 24% contribution to EPFO and Ujjwala. Total transfers exceed Rs 68,000 cr.
Is that not “cash in hand?”
Do recall allocation to MGNREGA during UPA?
NDA Govt doubled allocation during COVID period last year frm Rs 61500cr to a historic high of over Rs 1 Lk cr.
Also increased wages to Rs202 & ensured 300 crore person days of work in total.
Is that not “cash” in hand for workers?
While UPA disbursed bad loans, we’ve provided Rs3Lk cr govt guarantee via ECLGS to industry to sustain & revive thr business (MSMEs, Hospitality, Travel & Tourism, Sports, Healthcare etc)
Over Rs2.65 lk cr sanctioned to ovr 92 Lk a/c.
Does ths not provide “cash” flow for businesses?”