Gathered Political

Believable Or Unbelievable?- Mismanagement Or Unsuccessful Precautionary Measures?

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After conducting press conferences 2 weeks in a row, Finance Minister Nirmala Sitharaman, Former PM Manmohan Singh blamed India’s growth slump on all-round mismanagement by the government in a critique of its economic performance. He urged the Modi administration to set aside its vendetta politics and reach out to all sane voices and thinking minds to find ways of steering the economy out of “this man-made crisis. 

Singh claimed that government policies had led to a massive loss of jobs, rural distress and unabated tax terrorism, in a statement issued on Sunday in the wake of GDP growth has slowed the most in six years in the June quarter. He questioned the rationale behind the transfer of Rs 1.76 lakh crore from RBI’s surplus and said the man-made blunders of demonetization and a hastily implemented GST (goods and services tax) had crippled the economy, especially the crucial manufacturing sector, which is tottering at 0.6%” growth. 

“The last quarter’s GDP rate of 5% signals that we are in the midst of a prolonged slowdown,” said Singh, who has also been a finance minister and RBI governor. 

Loops in Tax revenue

“India has the potential to grow at a much faster rate. But all-round mismanagement by the Modi government has resulted in this slowdown,” Singh said. 

The government has announced a series of measures aimed at turning the economy around in the past week or so. These include the rollback of a tax surcharge on overseas investors, relaxations in foreign direct investment (FDI) norms, incentives for the auto industry, and an extensive consolidation of state-owned banks. 

Singh said there is a gaping hole in tax revenues and that tax buoyancy remains elusive as businessmen, small and big, are hounded, and tax terrorism continues unabated, and investor sentiments are in the doldrums. He went on to say, These are not the foundations for economic recovery. 

The government’s policies are resulting in massive jobless growth, Singh said,

“More than 3.5 lakh jobs have been lost in the automobile sector alone. There will similarly be large-scale job losses in the informal sector, hurting our most vulnerable workers.” 

Referring to rural and agrarian distress, Singh said, “The low inflation rate that the Modi government likes to showcase comes at the cost of our farmers and their incomes, by inflicting misery on over 50% of India’s population.” 

Referring to rural and agrarian distress, Singh said, “The low inflation rate that the Modi government likes to showcase comes at the cost of our farmers and their incomes, by inflicting misery on over 50% of India’s population.” 

Singh said the surplus transfer would challenge the strength of the central bank. 

“The resilience of the RBI will be tested after its record transfer of Rs 1.76 lakh crore to the government,” he said. He also said the government claims that it does not have a plan on what it will do with this windfall. 

Singh also cited reports questioning the quality of the economic data issued by the ruling government. India has also not been able to take benefit of global trade tensions between the US and China.

“The credibility of India’s data has come under question under this government,” he said.

“Budget announcements and rollbacks have shaken the confidence of global investors. India has not been able to increase its exports to take advantage of opportunities that have arisen in global trade due to geopolitical realignments. Such is the state of economic management under the Modi government.” 

On account of such comments of ex-Prime Minister and profound economist, the current finance minister Nirmala Sitharaman has something to say which does not justify the actions to the fullest.

On Sunday, she said, 

“Is Dr. Manmohan Singh saying that instead of indulging in political vendetta, they should consult sane voices? Has he said that? All right, thank you, I will take his statement on it. That is my answer,” 

She further added, “I have no thoughts on what he said. He said it, and I listened to it.” 

At present, the government needs to take sensible actions to help combat the financial crisis of the whole nation.

Now, it is up to you to decide whether the current situation is a result of mismanagement of BJP’s administration , just an unsuccessful precautionary measure, or not.

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