Modi’s advisor says UPA era economic growth ‘not bad’; but there was problem

By: | Updated: March 14, 2019 5:46 PM

The economic growth during the UPA era was ‘not bad’, but “the system was out of control", Sanjeev Sanyal, principal economic advisor to the Modi government said.

On demonetisation, economist said that the financial exercise was not a disaster.

The economic growth during the UPA era was ‘not bad’, but “the system was out of control”, Sanjeev Sanyal, principal economic advisor to the Modi government, said in an interview to The Print. The economy then faced problems of rising soaring inflation, widening and current account fiscal deficit, and massive ledning from the banks, he added.

“The real problem was inflation spiking up into double digits, fiscal deficits going up to 6.6 per cent in 2009-10, current account deficits at 3-3.5 per cent of the Gross Domestic Product, there was massive lending from banks, completely out of control,” he said.

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On demonetisation, economist said that the financial exercise was not a disaster as claimed by the critics and in fact improved the tax compliance and business culture of the country. The noteban move was one of the most challenging decisions by the Modi government, he also told The Print.

“You have to take demonetisation as part of the wider attempt of this governance problem. We have seen dramatic increase in tax compliance, business culture of the country has dramatically improved,” he said.

Meanwhile, Reserve Bank of India (RBI) doesn’t have data on banned Rs 500 and Rs 1,000 notes used to pay at petrol pumps, government hospitals, public transport among others, new agency PTI reported citing a reply to RTI query.

On November 2016, the day demonetisation was announced, the Modi government had allowed exchange of the demonetised notes and their usage for payment of utility bills for twenty three services.

“Information on (invalidated) notes used for paying utility bills is not available with us”, news agency PTI said citing RBI’s reply to a Right to Information (RTI) query.

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