Days after an unofficial back series GDP data showed an over 10% GDP growth in the UPA era twice, Finance Minister Arun Jaitley raked up two International Monetary Fund (IMF) reports proving that how Narendra Modi government has been successful in implementing series of reforms even as it inherited high inflation, high fiscal deficit, high current account deficit, and a standstill infrastructure, power sector and allocation of natural resources.
“The system have been substantially cleaned up and made more transparent,” Arun Jaitley wrote in a Facebook blog, asking readers to read the IMF reports to draw the conclusion. Arun Jaitley compared the IMF reports for January-February, 2014 and July-August, 2018.
He pointed out a 4.6% GDP growth forecast by IMF in FY14, lowest in a decade, along with double-digit inflation in the UPA days as against GDP growth forecast of 7.3% in FY19 and 7.5% in FY20, with headline inflation projection of 5.2% in FY19. “Stability-oriented macroeconomic policies and progress on structural reforms continue to bear fruit,” Arun Jaitley said quoting IMF report for July-August, 2018.
Meanwhile, former Finance Minister and senior Congress leader P Chidambaram claimed highest ever GDP growth by the UPA government on the back of the back series data generated by National Statistical Commission-appointed committee.
He said, in a column in The Indian Express, that the Modi government had inherited an economy that was on the upswing, with Gross Fixed Capital Formation at 31.3% in FY14, merchandise exports at a new peak of $315 billion, and foreign exchange reserves at a high of $304.2 billion. P Chidambaram said that the Modi government gained from the “unexpected bonanza through the collapse of crude oil and commodity prices”.