The policies of the UPA government to promote growth led to macro instability as they left office with high fiscal deficit and current account deficit, rising non performing assets and banking system that went in for reckless lending, Union Minister Arun Jaitley said on Sunday.<\/p>\n
Jaitley\u2019s comments come a day after the National Statistical Commission (NSC) sub-committee\u2019s back series estimates of GDP growth with 2011-12 base came to light. These estimates showed that the Indian economy grew at a faster clip in two terms of the UPA government against the average growth in the first four years of the NDA government.<\/p>\n
\u201cThe policies of the UPA to promote growth led to macro instability thus producing a poor quality of growth,\u201d Jaitley said in a Facebook post, citing data on fiscal deficit, bank credit, inflation and current account balance from 1999 to 2017-18. During the UPA regime, \u201cfiscal discipline was compromised and the banking system was advised to go in for reckless lending notwithstanding the fact that it would eventually put the banks at a risk. And yet when the UPA moved out of power in 2014, the last three year record, even in terms of growth, was less than modest,\u201d he said.<\/p>\n
He said 2003-04 witnessed the boom period for the global economy. The result was that global growth picked up. Most economies were doing well and all emerging economies started showing a high growth rate. \u201cThis period continued till 2008 when the global crisis started. For India to grow at a high rate during 2003-08 was quite obvious.\u201d<\/p>\n
Since demand was high, exports were growing, and, therefore, for an emerging economy like India it was a great opportunity. There were no significant domestic reforms carried out during this period, said the minister, who is recuperating after a kidney transplant operation.<\/p>\n
\u201cHowever, when this honeymoon ended, growth started slipping down and to ensure that growth is maintained, two significant steps were taken.<\/p>\n
\u201cFirstly, fiscal discipline was compromised and the banking system was advised to go in for reckless lending notwithstanding the fact that it would eventually put the banks at a risk,\u201d he said.<\/p>\n
And yet when the UPA moved out of power in 2014, the last three year record, even in terms of growth, was less than modest, Jaitley argued.<\/p>\n","protected":false},"excerpt":{"rendered":"
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