gdp: UPA did better on economics than NDA: P Chidambaram

NEW DELHI: The Congress of the United Progressive Alliance (UPA) led by the Congress did better with the economy during the ten-year run than the current National Democratic Alliance (NDA) headed by Bharatiya Janata, said the former Minister of Finance, P Chidambaram, citing data released on Friday.

According to Chidambaram, attempts to defeat the record of the UPA after the NDA took office in 2014, Chidambaram stated that the latest official data proved that "the truth can not be suppressed forever".

The UPA delivered the highest decadal growth since Independence, he said at a conference party press conference on Sunday. The new figures for the period 1994-2014, corrected for the base year of FY12, came from a committee set up by the National Statistical Commission (NSC).

"The numbers speak for themselves The most important and unmistakable conclusions are: UPA-1 and UPA-2 delivered the highest decadal growth (8.13% at factor cost) since Independence," he said. "It is also a question of recording that 140 million people have been deprived of poverty during this period.

The three best years were 2005-06, 2006-07 and 2007-08. (Chief economic advisor) Arvind Subramanian called them the boom years. & # 39;

Chidambaram said that the UPA regime under the leadership of Manmohan Singh had better expertise in managing the economy compared to the current management. He also said that many "highly praised" professional economists had left the NDA administration.

Chidambaram said that three policy decisions were responsible for economic disruption – demonetization, "faulty" implementation of taxes on goods and services (GST) and "tax terrorism", referring to aggressive revenue-generating efforts.

"Instead of revoking Vodafone's retrospective tax refund," the current government was given a "series of retroactive taxes," he said, which regularly criticizes companies with new tax returns.

The growth trajectory under the UPA would have continued, but before the financial crisis that struck the world in 2007-8. When the UPA left its position, growth was restored to 6.39% (at market prices) in 2013-14. Moreover, the budget deficit had been reduced to 4.48% and the current account deficit was 1.7%.

The NDA government "had inherited an economy that was on the rise," Chidambaram said. The government had "stumbled" after the first two years. "The main reasons were demonetization, inadequate implementation of GST and tax terrorism.

Another reason is the stagnation of investments. The peak in gross fixed capital formation as a percentage of GDP was 34.3% in 2011-12. Even in 2013-14 it was 31.3%, "he said." However, in the past three years it has remained constant at 28.5%. At that level it is not possible to achieve higher growth figures. "Another reason was a slow credit growth, he said.

"It was 14.0% in 2013-14. The average of four years under the Modi government is 8.27%," he said.

Projecting the congress as "a passionate advocate of high growth with justice and social justice", he said that all three factors had suffered under the current government. Chidambaram offered the best wishes of the regime. "In the interest of the country, we wish the government well in its fifth year, and we know that it can not match the average growth rate of UPA-1, but we hope that it can catch up with the average growth rate of UPA-2".

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