Former Finance Minister Yashwant Sinha believes that due to heavy spending on welfare schemes by the Narendra Modi government, the fiscal situation is getting badly affected and the fiscal deficit has reached an unusually high level. has gone. Sinha told PTI in an interview that it is surprising that no one cares about the fiscal position of the government, not even the government itself.
Sinha, senior vice-president of Trinamool Congress (TMC), said, “The Modi government is spending a huge amount on welfare schemes including free food grains. The state of the exchequer of the government is in shambles. The fiscal deficit is at an unusually high level. This is even more than the figures of the government, which are not considered ‘trustworthy’.
Also read: Along with saving tax, earning a lot, got a return of Rs 14.55 lakh in just so many years
The country’s fiscal deficit is estimated to be 6.9 percent of the Gross Domestic Product (GDP) in the current financial year 2021-22. Earlier it was estimated to be 6.8 percent. “Today, the government’s economic policies are decided on the basis of whether it will help it win elections or not,” Sinha alleged.
“This has led to ‘welfare’ for the poor on one hand, while on the other hand select corporates are making huge profits,” he said. This is something happening that no one in the country is worried about.” Sinha said this is a clear imbalance between strong fiscal policies and strong economic policies. This is the reality of today.
Responding to a question, Sinha said the Indian economy will have to deal with the challenges of inflation and growth. Asia’s third largest economy is expected to grow at 8.9 per cent in the current fiscal. Sinha, one of the critics of Prime Minister Modi, said the economy today needs investment from the government as well as the private sector. The former finance minister said that this does not seem to be happening. Government investment is not increasing. Private investment is also weak.
He said investment is weak because of the hike in interest rates. “In the absence of investment, the Indian economy will not be able to progress.” On the impact of the Russo-Ukraine war on the Indian economy, Sinha said, “Our economy is largely dependent on imported crude oil. In such a situation, the economy will be affected on the inflation front.
It is noteworthy that retail inflation has reached an eight-month high of 6.07 per cent in February. This is more than the satisfactory level of the Reserve Bank. Wholesale inflation has also reached 13.11 per cent. Sinha was in the cabinet of former Prime Minister Atal Bihari Vajpayee government. He had severed ties with the BJP in 2018 due to differences with the top leadership.