Former Union Minister S. Jaipal Reddy criticised the Union Budget saying that it did not provide succour to the sections that were hit by Prime Minister Narendra Modi’s unilateral decision to demonetise high value currency notes.
Addressing a press conference here on Thursday, Mr. Reddy said the government has failed to admit that the economy has taken a severe hit due to demonetisation, though it did agreed that the GDP would decrease by 1%.
Decrease of 1% GDP meant the country would lose ₹1.5 lakh crore, but other agencies have pegged the fall by 2%, which meant the country has already lost ₹3 lakh crore. Moreover, the impact would continue for two to five years, he said.
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Mr. Reddy said when he was the Petroleum Minister ₹1.3 lakh crore subsidy was given on oil, but the reduction of oil prices in the world market had saved the government ₹1 lakh crore. However, the government has failed to transfer that benefit to the people or use it to spur the economy.
The Congress leader felt the reforms in funding to political parties would not be of much use as they were not providing any funding to the candidates now. In turn, the candidates are funding political parties, which was why only industrialists and the rich were entering politics driving away real politicians.