Yashwant Sinha said that today the economy needs investment from the government as well as the private sector. He alleged that the government was not concerned about the fiscal.
Sinha said that the Modi government is spending a huge amount on other welfare schemes including free food grains.
Former Finance Minister Yashwant Sinha (Yashwant Sinha) believes that due to heavy expenditure on welfare schemes by the Narendra Modi government, the fiscal situation is being severely affected and the fiscal deficit (Fiscal Deficit) has reached an unusually high level. Sinha said that it is surprising that no one is concerned about the fiscal position of the government, not even the government itself. Sinha, senior vice president of Trinamool Congress, said, “Modi government is spending huge amount on welfare schemes including free food grains. The state of the exchequer of the government is critical. The fiscal deficit is at an unusually high level. This is even more than the figures of the government, which are not considered ‘trustworthy’.
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. Sinha alleged, “Today the government’s economic policies are decided on the basis whether it will help it win elections or not.” On the other hand select corporates are making huge profits. This is something happening about which no one in the country is worried.
Challenge of inflation and slow growth rate
Sinha said that 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 that 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 financial year.
High need for private investment
Sinha, one of the critics of Prime Minister Modi, said that 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 that investment is weak because of the increase in interest rates. “In the absence of investment, the Indian economy will not be able to progress.”
The economy will be affected on the inflation front
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 percent in February. This is more than the satisfactory level of the Reserve Bank. Wholesale inflation has also reached 13.11 percent. 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.
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