State of economy belies PM's claim, say Elders

By Our Special Correspondent

NEW DELHI, AUG. 16. Members cutting across party lines today attacked the Government for the economic slowdown and urged effective steps, particularly in the agriculture sector, in order to attain the targeted growth rate of seven per cent of GDP.

Participating in a short duration discussion in the Rajya Sabha on the economic slowdown, the Opposition was joined by members belonging to the BJP, DMK and the Telugu Desam in criticising the Government for the perilous state of the economy which belied the claim made by the Prime Minister at Red Fort yesterday that the slowdown was temporary.

Participating in the discussion, former Finance Minister and senior Congress leader, Mr. Pranab Mukherjee, quoted the Planning Commission's mid-term appraisal to assert that the country will not be able to meet the projected growth target in the Ninth Plan. ``In all the major areas like power, exports and industrial growth, there is massive shortfall and this would entail that the country would be forced to start with handicap in the Tenth Plan,'' he said, while accusing the Government of frittering the advantages it had inherited through tardy implementation. When the Ninth Plan was launched, the economy was booming. The balance of payment position was comfortable, the inflation rate was in check and exports growth had reached the highest level. However, the Government could not build on these advantages, he alleged.

Initiating the discussion, the CPI leader, Mr. J. Chitharanjan, criticised the Finance Minister for failing to boost savings in the last four Budgets. He dismissed the Prime Minister's assertion at Red Fort yesterday that economic revival was imminent by quoting the dismal prognosis given by the country's apex industry associations. The fact that industrial and agricultural growth had declined sharply indicated the onset of recession in the coming days, warned the CPI leader.

Mr. Ravi Shankar Prasad (BJP) said that on the one hand, the implementation of the Fifth Pay Commission report had reduced the funds available with the Government for carrying out developmental work. On the other, India was able to attract foreign investment in the range of $ 2-3 billions as against $ 40 billions accruing annually to China through this route.

Mr. C. Ramachandraiah (TDP) pointed out that the present growth rate is nowhere near the levels of 1992-96. Only a small part of the borrowings by the Government is being used for the creation of productive assets while the balance is spent on meeting the revenue deficit. He also drew analogies with China and urged the country to focus on agriculture in order to substantially improve the income of the rural population. ``Men will do rational things after exploring all irrational things. Let us now at least concentrate on the reforms in the agriculture sector,'' he counselled.

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