Govt to bring ‘White Paper’ on economic mismanagement of Congress-led UPA: What we know about it and why it matters now

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The Narendra Modi-led National Democratic Alliance (NDA) government in the Centre will bring a ‘White Paper’ on the economic mismanagement in the country before 2014 during the Congress-led United Progressive Alliance (UPA) government. The current Budget session of Parliament has also been extended for one day for this very reason, news agency ANI reported citing sources.

The White Paper will elaborate on India’s economic misery and its negative impacts on the economy during the UPA government. The White Paper will also talk about the impact of positive steps that could have been taken at that time, the agency reported.

Earlier on February 1, Finance Minister Nirmala Sitharaman—during her Interim Budget speech— also said the central government would release a ‘White Paper’ comparing the state of the Indian economy before and after 2014.

“It is now appropriate to look at where we were then till 2014 and where we are now, only to draw lessons from the mismanagement of those years. The government will lay a White Paper on the table of the House,” the finance minister said.

In a post-budget interaction with Network 18, the finance minister said that the White Paper would focus on the mismanagement of the economy during the previous regime. 

“We lost 10 glorious years… Every area of the economy was ridden by problems from banks to minerals,” Network 18 quoted FM Sitharaman as saying.

Why is the White Paper coming now?

It is important to note that the upcoming general elections are expected to be held between April and May 2024 to elect 543 members of the Lok Sabha. The tenure of the 17th Lok Sabha is scheduled to end on June 16, 2024.

The BJP-led NDA government’s track record looks impressive at present, according to many economists. The country is expected to become the third-largest economy in the world with a GDP of $5 trillion in the next three years and touch $7 trillion by 2030 on the back of continued reforms. Ten years ago, the country was the 10th largest economy in the world, with a GDP of $1.9 trillion at current market prices.

Today, it is the 5th largest with a GDP of $3.7 trillion (estimate FY24), despite the pandemic and despite inheriting an economy with macro imbalances and a broken financial sector.

“The strength of the domestic demand has driven the economy to a 7% plus growth rate in the last three years…in FY25, real GDP growth will likely be closer to 7%,” said a review released by the Finance Ministry ahead of Interim Budget 2024. It further said there is considerable scope for the growth rate to rise well above 7% by 2030.

The central government’s confidence was reflected in the finance minister’s Budget speech. “The economy has got a new vigour. The fruits of development started reaching the people at scale. The country got a new sense of purpose and hope,”  FM Sitharaman said during her speech.

 

 

 

Here’s your comprehensive 3-minute summary of all the things Finance Minister Nirmala Sitharaman said in her Budget speech: Click to download!

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Published: 06 Feb 2024, 08:37 PM IST

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