The hole that the UPA dug India into

Caught in a storm without an umbrella

Mint makes a very important point in today’s editorial:

We have often said in these columns that the UPA government made a cardinal mistake during its term: buoyant tax revenues should have been used to fix the fiscal problem. The money that flowed into the kitty was frittered away, even as the promise to restructure government spending was not followed up on. India is in a fiscal mess at precisely the point when it needs fiscal muscle to support weakening demand. The blame for this has to be laid squarely at the door of the Manmohan Singh government.

The overall tone of ministerial statements is one of innocent helplessness: The domestic slowdown is because of the global economic crisis. That is technically correct. But then the domestic acceleration, too, was partly because of the global boom between 2003 and 2007. The UPA government can’t have it both ways: claiming credit in good times and blaming others during bad times.[Mint]

4 thoughts on “The hole that the UPA dug India into”

  1. Let the UPA idiots do themselves in. We need a BJP govt, and the exasperated people are going to give Kaangress the heave-ho. The Atlanticists in the West are hoping that Mayawati will somehow emerge as some miraculous “3rd force” to elbow past UPA and NDA. They’re all constantly trying to compare her to Obama. What a joke. Let their fantasy bubbles be burst by the sharp pin of reality, as Mayawati’s own natural liabilities do her in. Not only should that happen, but I’d also really like for that large cesspool called Uttar Pradesh to be broken up into more pieces. That will keep local ethnic navel-gazers such as the Mayawatis, Mulayams and Lalu types contained. More Jharkhands and Uttarkhands for all. Give Telangana to the Telugus too. That’ll teach these bhaiyas and bhens a good lesson, by constraining their political fortunes at the level of their moral bankruptcy.

  2. Oh yeah, and India needs a good dose of supply-side economics. That’s what UPA should have been spending its fairweather days pursuing. Too bad that pretentious Oxford graduate who calls himself an economist can’t figure that out. Oh well, even if India as a whole can’t be raised up at once, at least the forward-looking states can liberate enough economic potential to sustain the momentum of reforms. I’m talking about Gujarat, Maharashtra, Rajasthan, Punjab, Haryana, Uttarkhand, Himachal Pradesh, Tamil Nadu, Andhra Pradesh (including the upcoming Telangana state). Even Bihar is making positive strides now that people have gotten sick of Lalu and his rock-bottom agenda. I’m a strong supporter of breaking up the bigger bloated states into smaller, more efficient ones, suffering from less policy paralysis, political deadlock and obstructionism. Break up that monstrosity UP, and clean up that cesspool.

  3. The editorial is on target. The UPA was claiming credit for an acheivement in which it had no hand. The 9% GDP growth was simply fuelled by the asy capital flows that happened in the last four years. damn it, even Pakistan, with all it troubles, grew by 7% in the recent past!! The PM deserves a lot of credit though, not for his current tenure -but his masterful handling of the reforms as the FM in in the 1990s.

    having said that, the NDA’s track record in economic governance has been nothing much to crow about either. Seriously, most of the major, politcaily tough reforms took place only during the early 1990s. In my opinion, the situation would have been no different if NDA had been at the helm over the past 4 years. NDA would have done as good a job of botching up the fisc as the UPA has done. WHile fiscal prudence during an economic boom is the right thing to do, which party would have the political will to restrain itself from populist adventures when votes are at stake?

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