Date : 30th August 2013
On behalf of the Members of Parliament of the Bharatiya Janata Party we submit this Memorandum to you on the unprecedented crisis facing the Indian economy today. The free fall of the Indian rupee against the US dollar is only a symptom of the deeper malaise afflicting the Indian economy today. The fundamentals of the Indian economy have been ruined because of the reckless policies of the government. The Fiscal Responsibility and Budget Management Act was thrown out of the window in 2008-09. The fiscal deficit of the government was allowed to rise exponentially in that year by the then Finance Minister who also happens to be the Finance Minister today from 2.5% of the GDP in 2007-08 to 6 percent of the GDP and the revenue deficit from 1.1 percent to 4.5 percent. This splurge in expenditure in 2008-09, most of which was consumption expenditure and not investment expenditure is wholly responsible for the present crisis. Fiscal deficit and revenue deficit have stayed at unsustainable levels year after year since then. The utter carelessness displayed on the external front has led to a burgeoning current account deficit. Retail inflation has been in double digit for the last four years. Interest rates have increased to unacceptable levels leading to a singular decline in investment. This has affected production adversely as a result of which growth rate in 2012-13 has declined to 5%. Experts predict that the growth rate in the current year may be below 4 percent.
The foreign exchange market and the stock markets have become extremely volatile. The rupee has lost as much as 3 percent against the dollar in a single day. An atmosphere of gloom and doom prevails in the country. We shudder to think of the unbearable consequences all these developments are going to have on the common man. There is already a talk of diesel prices going up by Rs. five a litre after the current Parliament session ends.
The Government of India, as usual, is in denial. Not satisfied with this it blames everybody else for the current crisis except itself. It blames the opposition, the state governments, the Reserve Bank of India and the global factors. The limit of irresponsibility was however crossed when the Finance Minister blamed his immediate predecessor for the crisis and the Prime Minister kept quiet. Sir, the crisis which afflicts the economy and the country today is primarily a crisis of confidence. We have a government which is unable to take any decision, provide any leadership, or a ray of hope for the future. It is mired in humongous corruption. Even the Supreme Court now suspects that it is trying to destroy evidence by making the incriminating files go missing.
The country can ill-afford at this moment of crisis a government which is paralysed, a Prime Minister who never speaks, a Finance Minister who wrongly blames his immediate predecessor who is unable to defend himself, a supreme leader who does not care about where the money will come from and a bureaucracy which is frozen and unable to act. The Ministers of this government are unbridled and working at cross-purposes. The relationship of the Government of India with the State Governments, specially the non-UPA ruled states and with the opposition parties, is at its nadir. We have come to urge you, therefore, to end the prevailing uncertainty by advising this Government to seek a fresh mandate at the earliest and not later than the state elections due in the next three months.
Thanking you, Sir,
(L.K. ADVANI) (RAJNATH SINGH)
(SUSHMA SWARAJ) (ARUN JAITLEY)