HIGHLIGHTS:

  • The financial package introduced by Union Finance Minister Nirmala Sitharaman on Monday has been highly criticized by the Opposition.
  • Congress claims that the funds in the scheme cannot be used by the families to spend on food, medicines, or their children’s education.
  • Under the Emergency Credit Line Guarantee Scheme (ECLGS), the Centre expanded its financial support by providing an additional Rs.1.5 lakh crore.

Today, Congress leader Rahul Gandhi took a fresh jibe at the Centre over the COVID-19 financial package introduced by Union Finance Minister Nirmala Sitharaman on Monday. Taking to Twitter, he slammed the financial package and termed it as another ‘scam’ by the Centre.

According to the details of the package, the funds cannot be used by the families to spend on food, medicines, or their children’s education. Gandhi tweeted, “No family can spend FM’s ‘economic package’ on their living, food, medicine, and child’s school fees. This is not a package, it’s a scam!”

Similarly, former finance minister P Chidambaram also criticized the package. He mentioned that the only solution to the ongoing crisis is to put money in the hands of the people, especially the poor and lower-middle-class. Taking to his Twitter, Chidambaram spoke about a few ‘elementary truths’ that credit guarantee is not credit and instead it is more debt. He underlined that no banker will lend to a debt-ridden business.

“Debt-burdened or cash-starved businesses do not want more credit, they need non-credit capital. More supply does not mean more demand (consumption). On the contrary, more demand (consumption) will trigger more supply,” he tweeted.

On Monday, Sitharaman had announced that the Centre has decided to expand the financial support being provided under the Emergency Credit Line Guarantee Scheme (ECLGS) by Rs 1.5 lakh crore. This Rs. 1.5 lakh crore of additional credit will be provided to small and medium businesses, and the healthcare sector.

To revive the tourism sector, Sitharaman had announced free tourist visas to the first five lakh tourists and said that financial support will be provided to more than 11,000 registered tourist guides and tourism stakeholders.

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