Manmohan criticizes the government for 'man-made economic crisis'
NEW DELHI: Congress maintained the attack against the NDA government on the economy, with the former prime minister Manmohan Singh On Sunday he referred to the situation as a man-made crisis and attributed the slowdown to the general mismanagement of the Modi government.
He called on the Modi government to put aside the revenge policy and get in touch with all the sensible voices and thinking minds to get the economy out of the crisis.
The veteran economist, credited with the start of key economic reforms in the 1990s as finance minister, noted the distressing trends of declining growth in the manufacturing sector and a depression of domestic demand. This makes it clear that our economy has not recovered from the man-made mistakes of demonetization and a hasty GST, Singh said.
Official data published last week showed that quarterly GDP growth had slowed to a minimum of six years of 5%. Congress has pointed to the government for the slowdown in growth, claiming that the real GDP growth figure was closer to 3% if the original base year of 2004-05 was considered. In recent days, former party president Rahul Gandhi and his sister Priyanka, who is secretary general, also criticized the government for its economic management.
Singh said nominal GDP growth, including inflation, hit a minimum of 15 years. There is a huge gap in tax revenue. Fiscal buoyancy remains elusive as businessmen are persecuted and fiscal terrorism continues unabated. These are not the basis for economic recovery, he added. The former prime minister also pointed to the government for mass growth without employment in the formal and informal sectors, the stressed rural economy and the erosion of RBI autonomy.