UPA inherited a healthy economy, made it non-performing, says government's White Paper

Tribune News Service

Sandeep Dikshit

New Delhi, February 8

The Modi government launched a scathing attack on the previous UPA government’s “lost decade” of economic reforms by issuing a White Paper that lists a plethora of scams, double-digit inflation, an ailing banking sector and high policy uncertainty all of which marred India's business climate, dented its image and the people's confidence about their future.

The ‘White Paper’ said the Modi government undertook a wide range of reforms which resulted in the transition of India from the league of 'Fragile Five' to the league of 'Top Five' in just about a decade. The Paper was tabled in both Houses of Parliament by Union Finance Minister Nirmala Sitharaman.

Divided into three sections, the first dwells on the mismanagement of the economy, the second, which is the shortest, lists the scams that took place during the UPA government, and the third, which is the longest, narrates the measures taken by the Modi government to set right the economy.

Answering the question why now, the Paper said, “Our government refrained from bringing out a white paper on the poor state of affairs then. That would have given a negative narrative and shaken the confidence of all, including investors. The need of the hour was to give hope to the people, to attract investments, both domestic and global, and to build support for the much-needed reforms. The government believed in 'nation-first' and not in scoring political points.’’

The first part, dealing with the macroeconomic situation under the UPA government, dwells on double-digit inflation, excessive bank lending, a vitiated business climate despite the Vajpayee-led NDA government “having handed over a healthy and resilient economy with high growth potential in 2004”. The part also details the “mismanagement and short-sighted handling” of the public finances during that decade.

“Ironically, the UPA leadership, which seldom fails to take credit for the 1991 reforms, abandoned them after coming to power in 2004. Little was done by the UPA government to build upon the strong foundation laid by the previous NDA government,” said the `Paper’.

The longest chapter on policies and measures that the Modi government took to restore the health of the economy, with the help of charts and graphs, claims to have made the economy vigorous and capable of fulfilling the growth aspirations of the people in the present and in the “Amrit Kaal”.

Red card against UPA

*Inflation rate during UPA years was in double digits and high fiscal deficits heaped misery on ordinary households.

*The UPA government will always be remembered for the largest power outage in history, in July 2012, leaving 62 crore people in darkness and putting national security at risk.

*Aadhaar, a symbol of digital empowerment, too, has suffered at the hands of UPA.

*Most infamous legacy was the banking crisis, and the high percentage of bad debts was underestimated.

*Debt rose at a fast pace; external debt climbed 21.1 per cent as against 4.5 per cent under Modi government.

*Large unspent funds for many social sector schemes due to poor policy planning and execution.

*Policy paralysis and weak leadership also hit defence preparedness; there was shortage of equipment and ammunition.

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