NEW DELHI: With the opposition demanding that the government slash fuel prices, BJP on Wednesday said “knee-jerk reactions” will not help and may end up harming the economy by worsening the fiscal deficit and pushing up inflation.
Union minister
Piyush Goyal said the government is working with a holistic view of the economy and has confidence that people will support and respect decisions taken in the national interest.
The minister also sought to explain the relentless fall in the value of the rupee, saying it was over 68.86 during the UPA government, but it was “artificially” strengthened by infusion of billions of dollars in the market through loans which the Modi government had to pay. The real fall in the Indian currency is not more than Rs 3 compared to its value in the UPA tenure, he said.
He also accused Congress of misleading people and took a dig at
Rahul Gandhi, saying he has little understanding of the economy. He said the fact that the
Bharat Bandh on Monday was a “flop show” indicated that people know what is good for the country and for them.
Decision taken to solve a specific issue may have more harm than benefits, he said, noting that overall inflation was 4.17% last month while it was more than 10 % during the UPA government.
