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Excited elders dissect economy, pull up government for poor show

The economic policy of the Bharatiya Janata Party-led coalition government, marked by ''an abnormal price rise'' of some items, came in for sharp criticism in the Rajya Sabha today when it debated the issue in detail.

The debate was inconclusive and will continue tomorrow. Finance Minister Yashwant Sinha will reply to the debate tomorrow.

Some members said the government, like its predecessor Congress government, continued to work under the directions of the World Bank and the International Monetary Fund, hence the crisis.

It was also mentioned that the government failed to properly assess the situation in the light of the economic crisis being faced by the neighbouring countries.

Members said a government which fails to maintain prices and allows a section of the people to rob the general public has no business to remain in office. Under it, no domestic economy can get a boost through foreign investments.

Jitendra Prasada of the Congress said that contrary to the claims of the BJP that the economy had improved in the eight months of its regime, the position had worsened.

He said there was no governance that gave a sense of stability to the common man. It was a government of confusion and the salt shortage was a "sad reflection" of the absence of any administration.

The "food mafia" consisting of importers, exporters and profiteers was very much active while the common man was fending off the evil effects of the price rise.

The house witnessed a wrangle when Prasada wanted to quote a newspaper report which had adversely commented on the working of the joint select committee for suggesting amendments to the Essential Commodities Act.

He said the three coalition governments in the country had proved that the multi-party efforts were a failure and it was time for the country to switch back to single-party rule for good administration.

Sinha said he could not reply to the allegations because they concerned the working of a parliamentary committee. Rajya Sabha Deputy Chairperson Najma Heptulla was of the view that the house should take cognisance of such newspaper reports and take necessary action.

Kamla Sinha of the Janata Dal regretted that the country had slipped to seventh position in terms of destination for foreign investments while, during the United Front government's rule, India figured in the top five slots.

The Congress demanded a thorough inquiry into the circumstances that had triggered the recent unprecedented onion crisis.

Former finance minister and senior Congressman Pranab Mukherjee said the government exported 295,183 tonnes of onions between January and October through the National Agricultural Marketing Federation at the rate of $239 per tonne and later imported the bulbs at the rate of $368 per tonne.

He said the gap of $129 per tonne was intriguing and demanded an inquiry into the matter. If somebody had made a quick buck, he should be penalised, Mukherjee added.

The rate of inflation has almost doubled --from 4.3 per cent in September 1997 to 8.2 per cent now -- and there has been negative growth in exports. The balance of payments position has deteriorated and could become worse if the trend in exports is not reversed, he warned.

Mukherjee wondered why the government had failed to finalise the Ninth Five-Year Plan. The information being given now by the government is that the plan will be launched in March next year. This, he said, would mean a two-year plan holiday.

Mukherjee said the Congress had assured the government of its co-operation in dealing with various problems on the economic front. "However, the hand of co-operation extended by us was not taken seriously."

He said the government did not even deem it fit to consult former finance minister Manmohan Singh, to whom goes the credit of putting the Indian economy back on the rails in 1991.

The Telugu Desam Party, a key ally of the BJP, cautioned the government that it would not support the wrong economic policies of the Centre.

C Ramachandraiah, a former spokesman of the TDP, alleged that the "incoherent, inconsistent and imprudent policies" followed by the government had taken the economy to a downturn and the inflation rate had peaked at 8.85 per cent in October 1998.

"You have burnt your fingers pursuing wrong policies and as a supporter of your government, don't compel us to burn ourselves with our continued support. Take care of the concerns of the masses. Only then we will be with you," he said.

He also ridiculed the confusion prevailing within the BJP on the issue of allowing private participation in the insurance sector.

He said the anticipated sum of Rs 50 billion from the divestment of public-sector shares had not even touched Rs 6 billion as foreign investors were shying away from the secondary markets.

He opposed the subsidy on kerosene, saying it should be made good through the supply of power. There is no need for a fertiliser subsidy too, provided the government gives fair prices to farmers. But this can be done only if red tape is removed, he remarked.

UNI

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