Congress, BJP spar over economy

Lloyd Doyle
August 20, 2018

Chidambaram made the claim citing the back series data on GDP prepared by the Committee on Real Sector Statistics constituted by the National Statistical Commission.

Union minister Arun Jaitley said the Congress-led United Progressive Alliance (UPA) government inherited a strong economy in 2004 from the National Democratic Alliance regime (NDA) led by the Bharatiya Janata Party, with growth already in excess of 8%.

Similarly, NITI Aayog Vice-Chairman Rajiv Kumar said that over 10 per cent growth rate during the Rajiv Gandhi government was debt funded, leading to the disastrous collapse of growth in 1990-92 forcing India to physically transfer gold reserves overseas to avoid a debt service default.

"Growth rate under four years of Modi government is still higher than the growth rate of last four years of UPA".

Congress leader rebuts NITI Aayog vice chairman's claim that Modi govt has surpassed UPA-era growth despite being handed over economy in bad shape. The main reasons were demonetisation, flawed implementation of GST and tax terrorism, the Congress leader alleged.

He said that there was a determined effort by the present BJP-led government to run down the record of the Manmohan Singh government through distortions.

"You will recall that the Congress had repeatedly pointed out that, when the base year was changed, the government should follow the healthy global practice and revise the numbers for the previous years", Chidambaram told reporters, adding that there was a "determined effort to run down" the UPA's ten-year track record.

"UPA-1 and UPA-2 delivered the highest decadal growth (8.13 per cent at factor cost) since independence". "For the sake of the country, we wish the government well in its fifth year". This should be a matter of non-partisan satisfaction to all concerned, but the noise around the new back series data all relate to comparisons of NDA vs UPA economic management. "The numbers prove the dictum that truth can not be suppressed forever and truth has a way of emerging amidst a torrent of lies and distortions", he said. "Dr Arvind Subramanian called them the "boom years", the former Minister said. "During Narendra Modi's regime, the country has transformed from the Fragile Five Economies to fabulous few destinations", he said.

Fiscal deficit is budgeted at 3.3 per cent for 2018-19, Current Account Deficit was below 2 per cent in 2017-18 and the gross FDI inflow into India was at an all time high of Dollars 61.9 billion, Patra added. "7.05 per cent in 2011-12; 5.42 per cent in 2012-13; and 6.05 per cent in 2013-14. Rupee's exchange rate went into a free fall during May-August 2013, declining nearly 25 per cent in 4 months", Kumar said in another tweet.

"... Post 2014, when the global economy was in slowdown mode, it was India and India alone which has been the fastest growing economy in the world for the last four years and has consistently overtaken China in the growth rate", Jaitley wrote. Higher growth rate in 2009-2011 and in previous years was funded by untenable fiscal deficit and reckless expansion of commercial bank credit which was surely unsustainable. In 2013-14, it was 14.0 per cent.

"The Congress is a passionate advocate of high growth with equity and social justice. But this government doesn't have them", he said.

Other reports by Iphone Fresh

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