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Former PM Manmohan Singh: Unemployment is high, informal sector in shambles due to demonetisation

News Agencies | Updated on: 3 March 2021, 11:41 IST

Former Prime Minister Manmohan Singh attacked Central Government over the rising unemployment and the prevailing crisis in the informal sector following the "ill-conceived demonetisation decision"

"Temporary measures by the Government of India and Reserve Bank to paper over the credit problems can not blind us to the looming credit crisis ahead that could affect the small and medium sector. Unemployment is high and the informal sector is in shambles - A crisis precipitated by the ill-considered demonetisation decision taken in 2016," he said.

While speaking at 'Pratheeksha 2030' organised by the Rajiv Gandhi Institute of Development in Thiruvanathapuram, the former Prime Minister further attributed the low employment and informal sector crisis to the 'ill-considered demonetisation.

Criticising the Union Government for not holding regular consultations with the states, Former PM Manmohan Singh further said that public finances in Kerala and other states were in disarray and many had to resort to excessive borrowing, creating an intolerable burden on future budgets.

"Federalism and regular consultation with states, which was the cornerstone of India's economic and political philosophy, no longer finds favour with the present Central Government. In the midst of all the gloom, I see the United Democratic Front's (UDF) steadfast adherence to planned growth with a clear sense of direction and concern of the common man a beacon of hope, not only for Kerala but for the entire country," he added.

He further lauded the efforts of the state's Congress leaders for planning a framework for the UDF government when they are voted to power and hoped that the main idea is focussed on the welfare of the common man.

"I am glad to see that UDF manifesto draft presented to the people for public response contains such radical ideas as NYAY - a scheme outlined in the Congress' national manifesto in 2019 which will provide direct benefit transfer to the poorest people," he added.


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First published: 3 March 2021, 11:41 IST