The charge of Union Finance Minister Mr. P. Chidambaram made yesterday that “the legacy of BJP/NDA was not only a low growth rate but of unsound fiscal management is not only factually incorrect but presents the Finance Minister in extreme poor light when it is contrasted with the way he has himself praised the economic performance by the NDA government in his Budget speech and Economic Survey prepared by his own government. Obviously, the good lawyer Mr. Chidambaram has not done his home work well as a FinanceMinister.
The NDA demitted office on May 21st 2004 and Dr. Manmohan Singh government took the office on May 22nd 2004. Mr. Chidambaram as the Finance Minister of the present UPA government presented his first Budget on July 8, 2004, that is after nearly one and a half month which gave him enough time to critically appraise the economic performance of the NDA. It is too well-known that a hostile government like the UPA would take a very critical view of the performance of the NDA. Yet, the Economic Survey presented by his own department for the year 2003-04 (when NDA was in power), and presented to the Parliament two days before he presented his first Budget on July 8, 2004 praised the all round economic growth in various sectors, which exposes his present falsehood.
Quotes from Economic Survey 2003-04
1. "The economy appears to be in a resilient mode in terms of growth, Inflation and balance of Payment, a combination that offers large scope for consolidation of the growth momentum with continued macroeconomic stability. Real GDP is estimated to have grown by 8.1% in 2003-04 buoyed by a strong agricultural recovery of 9.1% from the drought affected previous year. A growth rate higher than 8% has been achieved in the past in only 3 years i.e. 1967-68, 1975-76 and 1988-89."(Para 1.1, Page 1, General Review)
2. "The economy has enjoyed the benefits of relatively low inflation with comfortable stocks of food grains, enhanced competition in product markets and an appropriate mix of fiscal and monetary policies." (Para 1.63, page 15, General Review)
3. "The double digit annual average inflation rate of 10.6% between 1991-92 and 1995-96 came down to 4.2% between 2001-02 and 2003-04. The structural decline in inflation has also narrowed the differential with inflation in developed economies." (Para 5.2, Page 5, Prices and Food Management)
4. "Agriculture and allied sector value added registered a growth rate of 9.1% in 2003-04, reflecting the growth in physical production and remunerative prices of agricultural goods. The growth rate of the sector for 2003-04 was one of the highest in recent years."(Para 8.6, Page 155, Agriculture)
5. "Growth in the Industrial sector in 2003-04 continued to be healthy. The index of industrial production (IIP) grew by 6.9%. The major element of buoyancy in industrial growth was the manufacturing sector with 80% weight in IIP". (Para 7.1, Page 131, Industry)
Quotes From the Budget Speech of Shri P. Chidambaram for the year 2004-05 presented to the Parliament on July 8, 2004
6. "The economic fundamentals appear strong and the balance of payments is robust." (Para 8, Page 2)
Economic Survey 2004-05 (Presented in the Parliament on Feb 26, 2005)
7. "Buoyed by a rebound in the agriculture and allied sector and strongly helped by improved performance in industry and services, the economy has registered a growth rate of 8.5% in 2003-04 the highest ever accept in 1975-76 and 1988-89." (Page 1, Para 1.1 General Review)
It is obvious that the own Budget Speech of the Finance Minister on the floor of the Parliament as also the two Economic Surveys presented by his own department as above conclusively show that his allegation that the BJP NDA regime was one of low growth is patently false. It is important to note that the NDA government headed by Shri Vajpayee could achieve this economic progress in spite of many inhibiting factors like economic sanctions from across the world in the wake of Pokharan II atomic blast, Kargil war, one of the worst droughts in fourteen States during 2001-2002 and massive natural calamity like Gujarat earthquake and Orissa Cyclone.
The hard fact remains that in spite of tall claims, Indian economy under UPA, because of consistent mismanagement, is not in good health which reflects in rising prices. Even deficit numbers are being handled in a non transparent manner. The nearly 30,000 crores impact of pay commission loan waiver of 71,000 crores, the impact of fertilizer bond worth Rs. 100 thousand crores are not being factored in to budgetary deficit and instead are being left to be dealt by future governments to cloud the deficit statistics.
Mr. Chidambaram is missing the most fundamental point. Who is under scrutiny andjudgement? It is the sad repressive and grossly negligent record of the UPA government in the last more than four years, which is under scrutiny, which has caused enormous suffering of the common man. By making wild and factually incorrect allegations about the BJP NDA government that ended more than four years ago, Mr. Chidambaram can not escape his own responsibility in causing a mess of Indian food economy, rising inflation and continued misery of the people
