The Congress on Thursday blasted the Narendra Modi government for “hitting the middle class below the belt” by reducing the interest rates on small savings schemes and then trying to pass off the move’s withdrawal as “oversight”.
The Congress described finance minister Nirmala Sitharaman’s decision to take back the official order announcing the slash as a panic reaction caused by the possible fallout in election-bound states.
Former finance minister P. Chidambaram tweeted: “Announcement of interest rates on savings instruments for the next quarter is a regular exercise. There is nothing ‘inadvertent’ about its release on 31st March. The BJP Government had decided to launch another assault on the middle class by slashing the interest rates and profiting itself. When caught, the Finance Minister is putting forward the lame excuse of inadvertent error.”
Chidambaram added: “When inflation is at about 6 per cent and expected to rise, the BJP Government is offering interest rates below 6 per cent, hitting the savers and the middle class below the belt.”
While the withdrawn order would have fixed the PPF rate at the lowest 6.4 per cent, the interest rate on savings deposits had been reduced to 3.5 per cent. Interest rates on many other schemes had also been slashed.
Rahul Gandhi took a dig at the government, saying: “Loot on petrol-diesel was continuing, the government will loot the middle class after the elections by reducing interest rates on savings. This government is of lies and loot and false promises.”
Priyanka Gandhi Vadra also took a jibe at the finance minister’s “oversight” claim, tweeting: “Really, Nirmala Sitharaman, ‘oversight’ in issuing the order to decrease interest rates on Government of India schemes or election-driven ‘hindsight’ in withdrawing it?”Party’s communications chief Randeep Surjewala tweeted: “Madam FinaNCE Minister, are u running a circus or a Government? One can imagine the functioning of economy when such duly approved order affecting crores of people can be issued by an ‘oversight’. Who is the competent authority referred in order? You have no moral right to continue as Finance Minister.”
The official memorandum issued on Wednesday mentioned it had the approval of the competent authority. It is the finance minister who is supposed to approve such decisions.
Surjewala asked: “Who is this (in)competent authority? Why was the circular issued if it was not meant to be issued? Why was it even drafted in the first place? Was April Fool joke erroneously cracked on March 31? Oh! You will reduce it post elections.”