Releasing 'White Paper' earlier would have hurt investors' confidence, FM Sitharaman in Rajya Sabha

Union Finance Minister Nirmala Sitharaman speaks in the Rajya Sabha during the Budget session of Parliament, in New Delhi, on February 10, 2024 (PTI Photo)

Finance Minister Nirmala Sitharaman in an address to the Rajya Sabha on February 10, presented the Government's White Paper on the Indian economy, outlining the nation's economic trajectory before and after 2014.

Sitharaman covered a range of topics, highlighting the economic and growth challenges during the UPA era, achievements under the NDA, and the current government's commitment to transparency.

Criticises UPA's economic policies

The Finance Minister highlighted that the inflation rate during the final year of Atal Bihari Vajpayee's NDA government, which stayed below 4%. She criticized the way the UPA government managed the economy afterward, alleging they implemented misguided fiscal policies, subsidies, and extravagant spending for political benefits. She referred to this approach as "Gur ko gobar karna," suggesting that the Congress party has a mastery of ruining something that has been accomplished.

FM said, "Inflation in the last year of Atal Bihari Vajpayee's NDA Government was below 4%. They have mastery over 'Gud ko gobar karna'. In 2004, when PM Vajpayee's NDA Government handed it over to you with inflation below 4%, what did you do with it? Ill-targeted reckless fiscal policy, ill-targeted subsidies, wasteful expenditure, all done for political gains."

Clean governance and infra growth priorities under NDA

Highlighting the need for clean and accountable governance, Sitharaman rejected the idea of governance through extra-constitutional bodies. She stressed the importance of working towards a system that is transparent and answerable to the people.

"We need to have clean, accountable governance, and not governance through extra-constitutional body," the FM said.

Northeast development neglected by UPA

The Finance Minister also highlighted infrastructural development, specifically mentioning the establishment of a second railway station in the northeast during PM Modi's tenure.

Sitharaman criticized the UPA for neglecting the northeast region and argued that they should have given priority to the development of areas like Assam, the home state of former Prime Minister Manmohan Singh.

"Second Railway Station in the northeast. In all our independent India's history, a second railway station in the northeast when PM Modi comes in. After the first one, you forgot the northeast. At least you remember that Dr Manmohan Singh himself was from Assam, you should have worked there a little," FM Sitharaman said.

'India's economy set to become 3rd largest globally'

FM Sitharaman expressed the government's confidence in the economy's current state. She mentioned that the economy has grown to a certain level, making India the fifth-largest globally. The Finance Minister also predicted that in the next few years, India's economy would become the third-largest, a goal echoed by Prime Minister Narendra Modi.

"Today, when we are bringing the White Paper, it is because we have brought the economy to a certain level and that level gives us the confidence that we are able to now say that within the next few years, and that is why the PM keeps saying, "In my third term surely the economy will reach third rank." This is not without reason," the FM said.

Also Read: From fragile economy under UPA, India headed to become 3rd largest: FM Sitharaman

Stresses duty to keep public informed on economy

Sitharaman speaking on the timing of the White Paper, explained that releasing it earlier might have adversely affected the confidence of institutions, investors, and the public. She stressed the government's responsibility is to keep the public and Parliament informed about the real condition of the economy, both during the UPA administration and now.

"A White Paper on economy earlier would have affected confidence of institutions, investors, and the people," said Sitharaman, adding, "As an elected govt, we have every duty to inform public, Parliament about the true picture of economy during UPA and now."

Also Read: FM Sitharaman slams UPA govt in Lok Sabha, says white paper a 'record for posterity'

Sitharaman also mentioned a decrease in the unemployment rate among graduates, falling from 17.3% in 2017 to 13.4% in 2023.

Govt's White Paper presented in LS blames UPA for economic mismanagement

The White Paper was presented today in the Rajya Sabha, two days after it was tabled in the Lok Sabha. It attributes the "mountain of bad loans" and "double-digit inflation" to the previous UPA government, accusing it of economic mismanagement that allegedly drove away investors.