Press Statement of BJP National President
Shri Rajnath Singh
On the Economic Survey Report

BJP National President Shri Rajnath Singh expressed concern over the economic survey of 2006-2007 presented to Parliament by the UPA Government. The survey clearly states that despite the towering claims of the so-called high growth, the Government ultimately accepted that the higher inflation rate is the area of the concern. The Finance Minister, Shri P. Chidambaram accepted that there is no short-cut measures available to curtail inflation. It is going to stay in 2007. This itself is a proof of incapability and helplessness of the government.

The economic survey states “With a shortfall in domestic production vis-à-vis domestic demand and hardening of international prices, prices of primary commodities, mainly food, have been on the rise in 2006-07 so far. Wheat with pulses, edible oil, fruit and vegetables, condiments, spices have been the major contributor to the higher inflation rate of primary articles. 39.4% of the overall inflation in WPI on February 3, 2007 came from the primary group of commodities”.

Shri Rajnath Singh said that BJP is worried about the down slide in the growth of agriculture from 6% in 2005-06 to 2.7% in 2006-07. The Economic Survey specifically states that it is the cause of concern. The survey further accepts that "Low investment, imbalance in fertilizer use, low seeds replacement rate, distorted incentive system and low post-harvest value addition. With more than half of the population directly depending on agrarian sector, low agricultural growth has serious implications for the inclusiveness of growth. Furthermore, poor agriculture performance that the current year demonstrated can complicate maintenance of price stability with supply side programmes in essential commodities of day-to-day consumption."

He expressed his deep concern that Investment in agricultural segment is continuously low at 2.1%. While the economy is growing at 9%, investment in agriculture at 2% is an area of concern according to BJP. The Finance Minister’s acceptance that measures required to sustain the present economic growth is nothing but lack of vision and long term policy of the UPA Government. In spite of 9% growth, infrastructure activities, funds and investment is an area of concern.

The Economic Survey clearly indicates that the benefit of growth is not being made available to the downtrodden, farmer, farm labour, urban poor. BJP wants that the benefits of the growth should be made available to the smallest person.

The Finance Minister and the Economic Survey accept unbelievable, disproportionate rise in the real estate prices. It is the monetary and financial policy of the Congress-UPA Government. The high rate of savings, which resulted in availability of liquidity, has been made available for speculative transaction of real estate and capital market.

BJP is concerned about the sustainability of the growth and also benefits of the same to be available to the smallest person of the country. BJIP has been consistently asking the Government to take steps to control inflation. Otherwise, it can mar the growth of 9% GDP growth with higher inflation rate of consumer products, particularly more than 28% inflation in primary product is an area of concern.

Shri Singh said that the situation of common man is quite pathetic in the present economic scenario. This grim scenario is the result of the inapt handling of entire economic affairs by the UPA Government. Now, the government must take appropriate steps for long term and immediate relief.

(Shyam Jaju)
Office Secretary