Finance Minister Arun Jaitley on Monday said that during the UPA, the high economic growth figures and the influx of banks (NPAs) in the flood is actually due to the indiscriminate debt given before and after the global debt crisis of 2008.
Jaitley attacks UPA
Between the ruling BJP and Jubani Jung in the Opposition Congress in the Congress about the figures of economic growth during the UPA government, Jaitley said that the growth of that time was an indiscriminate loan. Banks provided loans to unrealistic projects at that time, due to which NPAs have reached 12 percent in the banking system. He said that due to these reasons, macroeconomic problems arose in 2012-13 and 2013-14.
Jaitley reinstated the finance ministry last week after a long break due to medical reasons. He was on leave from April due to kidney transplantation and replaced by Railway Minister Piyush Goyal, who was given additional charge of the Finance Ministry.
Questions on Manmohan’s economic policy
Addressing the annual meeting of the Bank of India (IBA) by video conferencing on Thursday evening, Jaitley said that the way in which loan disbursement has been increased at a rate of 28-31 per cent to increase the growth, The consequences were to be seen in the future.
He said, “If we are tackling the growth of bank loans by 31 or 28 percent every year to increase economic growth , then history will definitely tell it to share indiscriminate debt and it is natural to see bad results in future.”
Blaming the banks for the problem of NPA, he said that loans were given to weak projects at that time. This led to problems in those loan accounts and the banks ignored them and kept paying new loans to those endangered accounts repeatedly.
The finance minister termed it as a risky banking. He said that due to similar tactics, more than a decade ago, more capabilities were created and we reached a situation where the projects established by the debt were not in the condition of repaying the loan installment. He said that some of these projects were also fraudulent.
Problems Against Loan Recovery
He said that the second mistake was even more that we started reducing the debts and the result is that we are now looking for a right way to recover them. Jaitley said that the long term economic growth rate of strong macroeconomic base can not be achieved. If we try to increase the rate of growth by ignoring the macroeconomic factors, then after some time the same thing becomes vomiting for the economy.
Jaitley said that to maintain the management of the economy, efforts should be made to achieve fiscal consolidation with fiscal consolidation and the rate of credit distribution should be kept logical.
It is worth noting that on August 17, a committee of the National Statistical Commission, in a report released on the real sector growth rate, according to the new GDP series, based on the previous year’s episodes, the economic growth in 2006-07 was 10.8 percent Has been shown. According to this report, the average annual economic growth during the 10 years tenure of the Manmohan Singh government was 8.1 percent, while in the four years of Modi government this figure was 7.3 percent.
The Congress and the BJP are giving their own arguments and claims on this report. There is also an argument in this that during the first tenure of the UPA government, the growth rate of the whole world was high. Meanwhile, the Ministry of Statistics has said that this report of the Commission’s committee is not an official figure, the official figures will be released later.