Image courtesy of ShutterstockTuesday's attack on the government by Congress was prompted by Rahul Gandhi, former chief of the party, claiming that no family could spend the economic package to support the economy hit by the pandemic. He also said that it was "just another sham."Monday's announcement by Nirmala Sitharaman, Finance Minister, of Rs 1.5 lakh crore in additional credit for small and mid-sized businesses, more funds to the healthcare sector, loans for tourism agencies and guides, as well as a waiver of visa fees for foreign tourists, was part of the package of support for the economy.Gandhi reacted to the government's stimulus package for the economy and said that no family could spend the FMs economic package on its living-food-medicine childs school fees.He tweeted in Hindi, "It's not a package! It's another scam!"P Chidambaram, a senior Congress leader, also criticised the government for the package. He said that the solution to this "crisis" was to increase demand by giving money to the people, particularly the poor and lower middle classes."Some basic truths: Credit Guarantee is not credit. Credit is more debt. Chidambaram stated that no banker will lend money to a business with high debt.The former finance minister stated in a series tweets that cash-starved or debt-burdened businesses don't need more credit and they do not require non-credit capital."More supply doesn't necessarily mean more demand (consumption). He said that more consumption (consumption), will lead to more supply.According to Chidambaram, a country where there have been job losses and wages or incomes cut will not see an increase in demand.He stated that money should be in the hands of people, particularly the poor and the lower middle classes to solve the crisis.Monday's claim by Congress that the Finance Minister announced measures "delivered nothing but headlines" and called for the government to take steps to boost demand to revitalize the economy, which "continues to be in the doldrums".
