In a fresh attack on the BJP government at the Centre in the wake of the Reserve Bank of India’s (RBI) fresh revelations on the state of the economy, the Congress on Wednesday alleged that the economy has been completely “mismanaged” by the ruling dispensation.

Congress general secretary in charge of communications Jairam Ramesh said that the economic trends shown in the RBI bulletin for the month of October are a matter of extreme concern. They reflect Prime Minister Narendra Modi-led government’s continuing “mismanagement” of India’s economy.

The Congress MP said the September bulletin carried a range of negative indicators, including a 47-year low in the savings growth rate, a stagnation of domestic credit to the private sector, and a flat labour-force participation rate.

Noting that these trends either have sustained or worsened over time, he said, “A major reason for the low net savings growth is that there was a huge spike in household liabilities. Despite the Finance Ministry’s misleading claim that this spike is due to home and vehicle loans, the September bulletin had clearly shown there was a 23 per cent spike in gold loans and a 29 per cent spike in personal loans.”

On the galloping inflation in the country, The Congress MP said, “Inflation remains out of control at 6.8 per cent, way above the RBI’s target of 4 per cent. The RBI raised the issue of sustained inflationary pressures in cereals, pulses, and spices. A vast majority of Indians continue to face the pressure of price rise on their incomes, finding it difficult to meet basic food, education, and other necessities.”

Taking a swipe at the prime minister, Ramesh said, “While the PM lectures others on ‘revdis’ (freebies) and fiscal responsibility, the Modi government’s fiscal deficit is ballooning. It has grown by almost 20 per cent over the past year, to over Rs. 6.4 lakh crore in Q1 of 2023-24.”

He claimed the Modi government is incurring debts that will weigh India down in the future, and to show a smaller deficit, is violating all principles of federalism by reducing tax transfers to states.

“Each month’s RBI Bulletin should serve as a reminder to the Modi government that as much as it tries to hide data and mislead the public, the basic facts do not lie. The economy has been completely mismanaged and the vast majority of Indians are suffering,” Ramesh added.