As GDP dips to -23.9 per cent, CPI (M) bats for public expenditure

Ravi S Singh
Tribune News Service
New Delhi, September 1

In the backdrop of significant fall in country’s GDP in the April-June quarter, the CPI (M) has suggested large scale public expenditure by Union government, including in infrastructure that would provide jobs and increase purchasing power of people.

The purchasing power will help boost demand, which is at low ebb, in the market.

“The government, however, continues to pursue policies of constraining expenditures which, in turn, also drastically reduced governmental revenues because of the economic recession,” the CPI (M) said in a statement.

The party pitched for large scale hikes in public investments coupled with cash transfers and free food, saying this was the only way any meaningful economic recovery was possible along with providing   people some relief and livelihood.

The primary cause for rhe economic recession dip in domestic demand.

Sounding a note of caution to the Union government, it said no amount of incentives for private investment can revive the economy.

“What is produced by such investments needs to be sold in the markets.  There are no buyers, both globally and domestically.”