After slamming the economic policies of the previous UPA government in Parliament, Prime Minister Narendra Modi-led BJP on Sunday released a ‘White Paper’ on the conditions of the Indian economy during the Congress-led regime. The ‘White Paper,’ which specifies the financial irregularities during the UPA regime was released on the second day of BJP’s national convention.
The banking sector remained a particular target of the BJP’s White Paper against the UPA government and the party claimed that the Dr. Manmohan Singh-led government compromised macroeconomic stability while the infrastructure sector was seriously neglected.
“The banking crisis in 2014 and the total amount at stake we huge. Gross advances by public sector banks in March 2004 stood at only ₹6.6 lakh crore. In March 2012, it was it was ₹39.0 lakh crore,” the White Paper was quoted by Times of India as saying.
“In 2013, when the US dollar rose rapidly, the UPA government compromised external and macroeconomic stability, and the currency depreciated in 2013. Against the US dollar between 2011 and 2013, the Indian rupee fell 36 percent. Infrastructure construction was seriously neglected, leading to a decline in industrial and economic development,” it added.
Expanded borrowings and utilized them in an unproductive manner
The White Paper targeted the UPA regime on the infrastructure work and claimed that only 6,000 kilometers of national highways were built during the 10 years of the UPA government. While speaking on the wide fiscal deficit, BJP’s White Paper said that the previous government expanded the borrowings and utilized the same for unproductive purposes.
“In an affidavit submitted to the Supreme Court in response to a PIL, the UPA government said that about 40,000 kilometers of national highways were added. 24,000 km of national highways were added during the NDA regime from 1997 to 2002. Subsequently, only about 6,000 kilometers were added in the last ten years of UPA (2004-14),” it said.
“As a result of its fiscal mismanagement, the UPA government fiscal deficit was much larger than expected, and it ended up borrowing 27 percent more from the market than in the 2011-12 budget. The burden of fiscal deficit became too heavy for the economy to bear. Under the pretext of mitigating the impact of the global financial and economic crisis, the UPA government expanded its borrowings and stuck to it. The UPA government not only borrowed huge amounts from the market but also used the funds raised in an unproductive manner,” the White Paper said.
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Published: 18 Feb 2024, 04:03 PM IST
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