Government creates ‘loan mayajaal’ instead of providing help for the poor

As the government tries to cover up the mismanagement of the COVID-19 crisis, another lie by the government has been exposed.

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NH Web Desk

As the government tries to cover up the  mismanagement of the COVID-19 crisis, another lie by the government has been exposed.

1.  Government tries to cover up the mismanagement of the crisis by lies

Congress leader P Chidambaram took a swipe at the government, highlighting apparently contradictory statements by two Union Ministers on condition of MSMEs that have been adversely affected by the national lockdown over the COVID-19 virus.

2. P. Chidambaram highlighted the contradictory statements by two union ministers

Chidambaram referred to a comment by MSME Minister Nitin Gadkari, who told that government agencies owed MSMEs Rs 5 lakh crore in unpaid dues

3.Gadkari said government owed Rs 5 lakh crore to MSMEs in unpaid dues

Mr Chidambaram then pointed to a statement by Finance Minister Nirmala Sitharaman on Wednesday, in which she announced Rs 3 lakh crores in collateral-free loans for 45 lakh MSMEs.

4. Nirmala Sitharaman announced Rs.3 lakh crores in collateral free loans for 45 lakh MSMEs

"Minister Gadkari says that governments and PSUs owe Rs 5 lakh crore as unpaid dues to MSMEs. Minister Sitharaman says she will offer collateral free loan of Rs 3 lakh crore to MSMEs (numbering 45 lakhs). So, who is the lender and who is the borrower?!" Mr Chidambaram tweeted.

5. Who is the lender and who is the borrower?, asked Chidambaram

"Will the two ministers 'settle their accounts' first and let MSMEs save themselves without government's 'help'?" the former Finance Minister said sarcastically.

6.The two ministers must settle their accounts first: Chidambaram

Earlier this week, Ms Sitharaman, detailing the government's Rs 20 lakh crore COVID-19 economic relief plan, said loans to MSMEs would be credit-free and come with a 12-month moratorium.

7. FM Nirmala Sitharaman announced loans to MSMEs with a 12 month moratorium

The loans come as lakhs of small businesses across the country teeter on the edge of bankruptcy due to the coronavirus lockdown.

8.Lakhs of small businesses across the country are on the edge of bankruptcy

Nitin Gadkari said dues owed to MSMEs by central and state governments, as well as PSUs and other industries was "very high" and MSMEs, as a result of such outstanding dues, were engaged in a "battle for survival".

9. MSMEs are battling for survival because of outstanding dues

Mr Chidambaram's tweets appear to indicate the contradiction in the two minister's statements, questioning the apparent non-payment of dues to MSMEs while adding to their loans outstanding.

10. Chidambaram pointed out non-payment of dues to MSMEs

The Congress leader had earlier expressed cautious approval of the government's relief plan for MSMEs, calling it "modest".

11. The government's relief plan for MSMEs is Modest: P.Chidambaram

He also expressed disapproval over other measures announced, describing the government as a "prisoner of its own ignorance".

12. The government is the 'prisoner of its own ignorance": Chidambaram

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