The All India Bank Officers Confederation (AIBOC) in Chhattisgarh has expressed its outright opposition and anguish over the decision to "demolish" Public Sector Units (PSU) as part of the Prime Minister’s ‘Atma Nirbhar Bharat’ package.
AIBOC State unit Secretary Y. Gopalkrishna said in a statement that the economic package contains very little in terms of fiscal stimulus as it tries to inflate the package size by adding liquidity infusion measures with that of fiscal measures. "It is misleading and also technically fallacious."
The privatization of PSUs, instead of promoting economic self-reliance, will destroy the very foundation of national economy, he warned.
It is stated that in view of the coronavirus pandemic crisis which has hit economies across the globe, a substantial fiscal package to be financed through an expansion of the fiscal deficit is required.
“The government has the option of issuing special Covid-19 bonds and borrow money directly from the Reserve Bank of India at a low interest rate, as advised by several eminent economists. The need of hour is fiscal stimulus. Only a substantial surge in the public investment and spending can ensure crowd-in funding through the route of private investment,” he said.
Gopalkrishna said it is most worrisome that several state governments are suspending labour laws to increase working hours and intensify labour exploitation, rather than providing timely support to the distressed working class.
The mounting pressure on the banks to deliver credit to MSMEs and various other sectors in a demand-deficient economy will lead to a severe deterioration of the credit and asset quality of the banks, he said.
Banks have a large stock legacy of NPAs after the previous global recession of 2008-09 due to lending spree, he added.
He said that the AIBOC will go to any extent across the country to thwart the implementation of such "anti-people policy" of the government.