Household Savings At 50 Year Low: Even though the Modi government at the Center is patting its back on the fact that during its tenure, India has become the fifth largest economy in the world and the country’s It has doubled to Rs 1,72,000 per person in 2022-23 as compared to 2014-15. But according to the latest report of RBI, the domestic savings of Indians are continuously declining and it has reached the lowest level in 50 years. In the monthly bulletin issued by the RBI for the month of September, a latest report of the Reserve Bank on Household Assets and Liabilities (RBI data on Household Assets and Liabilities) has come out, according to which the household savings of the people will be 11.5 percent of the GDP in 2020-21. It has come down to 5.1 percent in the financial year 2022-23, which has become a cause for concern.
According to RBI data, net financial savings have declined to 5.1 percent during the year 2022-23. In terms of the country’s GDP, India’s net savings have come down to Rs 13.77 lakh crore in 2022-23, which is the lowest in 50 years. Exactly a year ago in 2021-22, net saving was 7.2 percent of GDP. Obviously, people’s income is decreasing so people are spending more than saving. According to the RBI report, the debt burden on the citizens of India has increased rapidly. In the year 2022-23, it will reach 5.8 percent of GDP. A year ago it was 3.8 percent. That means they are borrowing more to meet their consumption.
Opposition’s attack on the government
After this RBI report came out, politics has also started on this. After this data came out, Congress President Mallikarjun Karge, while targeting the Modi government, tweeted that the public’s savings have become the lowest in 50 years. He said that in the good days of Modi government, people’s savings are getting affected. The government has also been targeted by tweeting from the Twitter handle of the main opposition party Congress.
Public savings lowest in 50 years,
Good days in Modi government” It felt like such a slap!
Looting by inflation, falling income and increasing borrowing are the main reasons for this.
Modi government has not only spoiled the budget of a common family, decreasing household savings is also very bad for India’s economy… pic.twitter.com/vPcp8wUa2w
— Mallikarjun Kharge (@kharge) September 20, 2023
Inflation put a stranglehold on savings
According to RBI, there has been a huge decline in net household assets during 2022-23 as compared to the year 2020-21. Household assets were Rs 22.8 lakh crore during the year 2020-21, which fell to Rs 16.96 lakh crore in 2021-22 and came to Rs 13.76 lakh crore in the year 2022-23. It is clear from the report that back-breaking inflation is robbing people’s savings.
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