States would be able to borrow more money, the Centre said today (File)
The centre's coronavirus stimulus package amounts to Rs 3.22 lakh crore which is 1.6 per cent of the country's gross domestic product, not Rs 20 lakh crore announced by Prime Minister Narendra Modi last week, the Congress said on Sunday, after Finance Minister Nirmala Sitharaman unveiled the last tranche.
"The government's economic package is only of Rs 3.22 lakh crore and is only 1.6 per cent of India's GDP and is not worth Rs 20 lakh crore as announced by the Prime Minister," Congress spokesperson Anand Sharma said, addressing a press conference through video conferencing.
"I am questioning the Finance Minister, disputing the announcement of Prime Minister and challenging the government to disprove me on the numbers given by me and am ready for a debate with the finance minister," he said.
PM Modi must walk the talk, he added.
Entrepreneur Kiran Mazumdar Shaw said the series of announcements lacked bold measures.
"Most disappointed at lack of bold measures in stimulus packages - don't think demand will be created n consequently economic activity will be stifled ₹20 lakh crore was a huge amount n it was meant to stimulate economic revival n growth @nsitharaman @narendramodi," she tweeted.
States would be able to borrow more money, the Centre said today, increasing their borrowing limit from 3 per cent to 5 percent. This would give them an additional Rs 4.28 lakh crore, said Union finance minister Nirmala Sitharaman, unveiling the fifth and the last tranche of the Rs 20 lakh crore fiscal stimulus.
The states have been facing sharp decline in revenues following the countrywide lockdown imposed to counter coronavirus. "We have consistently provided the necessary support because they are at the front end of fighting the pandemic," Ms Sitharaman said.
PM Modi last week announced a Rs 20 lakh crore, which he said was 10 per cent of the GDP, to cushion the economic impact of the coronavirus pandemic and weeks-long lockdown.
With inputs from PTI