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Devastating takedown of this government’s economic policy from Sir Howard Davies: “The way the government have been behaving in recent months is such that if they were *trying* to slow the economy down, I can’t think of anything else they would do”

35,967 просмотров • 9 месяцев назад •via X (Twitter)

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The twin balance sheet, the fragile five economy, they're all as a result of the way in which the economy, the banks were treated. Our fiscal headline numbers would have been healthier, if we hadn't been burdened by that sin. UPA left behind, ₹2.92 lakh crores in oil bonds and the broken economy, the banking system. I told you about the oil bonds which we cleared now. I'm now telling you about the broken banking system which required ₹2.8 lakh crores for recapitalization. The health of the banks today is that they are paying returns to the government and with that money we are able to do more meaningful welfare projects. But when you left in 2014, you left the banks in such a fragile situation that I had to give ₹2.8 lakh crores for recapitalizing them. If that money was available, our fiscal deficit would have been better. Then you can showcase what my fiscal deficit was and compare it with yours. You have pushed everything under the carpet and say, "You never will match that period. Your growth is not good enough now." If I do those sort of things, it will be three times better. We don't do any of that. The proposed Economic Stabilization Fund will provide fiscal headroom to allow India. How am I able to do? Having created the fiscal headroom, I'm able to allow India to respond to the global headwinds such as the recent crisis. We are able to mobilize that kind of money because the headroom is available. Imagine in 2014, would I have had the comfort? No, because I'm recapitalizing banks, I'm paying loans, I'm lifting the economy from where they have left the fragile five. So economy today, is a totally different thing. - Smt Nirmala Sitharaman in Rajya Sabha

Nirmala Sitharaman Office

10,443 просмотров • 5 месяцев назад