Manmohan: Under Modi govt., growth engines of economy are spluttering

The former Prime Minister, Manmohan Singh, on Monday launched an all-out attack on the Modi government and alleged that economic mismanagement and falling growth rate is slowly eroding the trust of the general public in the banking sector. “I say this with great care and responsibility,” he said.

Addressing presspersons at the Karnataka Pradesh Congress Committee (KPCC) office here, Dr. Singh said the recent events, which resulted in shortage of cash in many States, were preventable. “But the government is not doing its job. Instead of taking prompt corrective action, it has been busy providing excuses and peddling conspiracy theories as to what led to the problem,” he said.

Pointing out that a healthy economy requires a well-functioning banking sector, Mr. Singh said: “Today, neither are the banks lending, nor is the private sector borrowing in order to make new investments. The growth engines of the economy are spluttering. Perhaps it is here that the mismanagement of the Modi government is most evident.”

Coming down heavily on the Modi government over the series of bank frauds, he said: “The proportion of non- performing assets (NPAs) has trebled since we demitted office. The quantum of frauds in the banking sector has almost quadrupled from ₹28,416 crore in September 2013 to ₹ 1.11 lakh crore in September 2017. Perpetrators of these frauds meanwhile escape with impunity.”

“Demonetisation and hasty implementation of the Goods and Services Tax are the two major blunders of the Modi government,” he said.

“Our nation today is experiencing difficult times. Our farmers are facing an acute crisis, our aspirational youth are not finding opportunities, and the economy is growing below its potential.”

“It pains me to see how rather than standing up to all these challenges, the government’s response has been to stifle dissent when deficiencies are pointed out,” he said.

“India is a complex and diverse country and no one person can be the repository of all wisdom. Every time we have sought an answer for any of the disastrous policies of the present BJP government, all we hear is that their intentions are virtuous. But, they have resulted in massive losses for the country. Its lack of reasoning and analysis are costing India and our collective future,” he said.

Raising the issue of rising fuel prices, Mr. Singh said the Centre was “punishing the people” by levying “excessive excise taxes”. “Through this [excessive taxes], the BJP is projected to have earned over ₹10 lakh crore,” he said.