The Congress on Monday accused the government of ”mismanagement of economy” and having ”misplaced priorities”, claiming households are unable to save due to high inflation and stagnant wages.
In a post on X, Congress general secretary Jairam Ramesh cited a media report which he said flagged ”serious concerns” about India’s household savings.
”Many economists have raised the following critical issues: Due to high inflation and stagnant wages, households do not have sufficient funds to save. The savings rate is at its lowest in many decades. Reduced savings means less capital available for business and government investment. Instead, India will have to depend on volatile foreign capital for financing,” he said.
”The share of housing loans, out of all personal loans, is below 50% for the first time in 5 years — a matter of serious concern, showing that increase in household liabilities is driven by distress,” the Congress leader said.
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He claimed that mass market cars and two-wheeler sales have slumped, but high-end cars and SUVs are doing well, financed by growing vehicle loans.
”Luxury goods spending is growing while majority of the people must borrow to finance their daily essentials. This shows the deep and growing inequality in the economy,” Ramesh said.
”The Modi government, especially the Finance Ministry, can try to spin this issue as much as it wants, but the truth of its misplaced priorities and mismanagement of the economy is there for everyone to see,” the Congress general secretary said.
The party had on Sunday also alleged the government has mismanaged economy across all sectors and since it is ”too inept” in fixing issues such as unemployment and price rise, it is distorting the data instead.
The opposition party has been attacking the government over its handling of the economy and raising concerns over ”increasing unemployment and price rise”.