Finance Minister Nirmala Sitharman on Thursday laid a White Paper on the Indian economy in the Lok Sabha. The White Paper gives a ‘before and after’ account of the economy, comparing the economy during the 10-year UPA rule with the 10-year NDA rule.
The white paper was tabled on the last day of the ongoing budget, which was extended by a day for this purpose. This is the last session of the current Lok Sabha before the general elections expected to be held in April-May this year.
The government had announced in the union budget presented on February 1 that it will come out with a ‘White Paper’ to compare the economic performance of 10 years of the Congress-led UPA government with that of 10 years of the BJP-led NDA government.
Union Finance Minister Nirmala Sitharaman lays on the Table a copy of the 'White Paper on the Indian Economy' today, in Lok Sabha pic.twitter.com/oYFwUHtSeE
— ANI (@ANI) February 8, 2024
The White Paper has been produced in two languages, English and Hindi. The 59-page white paper details how UPA had inherited a healthy economy in 2004, and the Indian economy was in bad shape in 2014, when the Narendra Modi govt replaced the Manmohan Singh govt. The white paper highlights the contrasting trends in the stock market and Foreign Institutional Investors (FII) inflows during both periods.
The white paper says in the overview section: “In 2014 when we formed the government, the economy was in a fragile state; public finances were in bad shape; there was economic mismanagement and financial indiscipline, and there was widespread corruption. It was a crisis situation.”
It says, “The responsibility to mend the economy step by step and to put the governance systems in order was enormous. Our government refrained from bringing out a white paper on the poor state of affairs then. That would have given a negative narrative and shaken the confidence of all, including investors. The need of the hour was to give hope to the people, to attract investments, both domestic and global and to build support for the much-needed reforms.
The white paper further adds, “The government believed in ‘nation-first’ and not in scoring political points. Now that we have stabilised the economy and set it on a recovery and growth path, it is necessary to place in the public domain the seemingly insurmountable challenges – left behind as a legacy by the UPA Government.”
I then says, “Every challenge of the pre-2014 era was overcome through our economic management and our governance. These have placed the country on a resolute path of sustained high growth. This has been possible through our right policies, true intentions, and appropriate decisions.”
The White Paper first gives a glance at the nature and extent of governance, economic and fiscal crises that were bequeathed on the Modi government when it assumed office in 2014.
Second, it informs t about the policies and measures that the NDA government took to restore the health of the economy and make it vigorous and capable of fulfilling the growth aspirations of the people.
Third, the White Paper hopes to generate a wider, more informed debate on the paramountcy of national interest and fiscal responsibility in matters of governance over political expediency.
And at last, it aims to “commit ourselves to national development, with new inspirations, new consciousness, new resolutions, as the country opens up immense possibilities and opportunities.”
The White Paper has been divided in three parts. The first part discusses the macroeconomic situation of India under the UPA government. It notes that this period was marked by double-digit inflation, ailing banking sector with excessive lending and high policy uncertainty which marred India’s business climate and dented its image. India’s economy deteriorated despite the Vajpayee-led NDA government having handed over a healthy and resilient economy with high growth potential in 2004, it states.
The Part 1 also mismanagement of the economy during the Manmohan Singh govt, various scams causing massive revenue losses and out of control fiscal and revenue deficits. “In 2014, our government inherited a deeply damaged economy whose foundations had to be rebuilt to enable self-sustaining long-term economic growth,” says the White Paper.
The Part 2 of the paper gives current status of the various corruption scams of the UPA government.
And the Part 3 narrates how the NDA govt turned the economy around, rebuilt the country’s image and rekindled people’s hopes and aspirations for a better future. “Now, the nation marches ahead with self-confidence and self-belief,” it says.
