White Paper Live Updates: FM Sitharaman to table 'White Paper on the Indian Economy' in Rajya Sabha tomorrow

Union Finance Minister Nirmala Sitharaman to lay on the Table a copy of the ‘White Paper on the Indian Economy’ in Rajya Sabha tomorrow, 9th February.

There was pervasive corruption in various government activities, including in procurement, allocation of natural resources, and regulatory approvals. procurements vital for nation’s security were also not free from corruption. The scams and corruption cases had shaken confidence of the people.

The decade of the UPA government was a lost decade because it failed to capitalise on the strong foundational economy and pace of reforms left behind by the Vajpayee government. The potential of compounding growth never happened.

While investors across the world sought ease of doing business, the UPA government provided policy uncertainty and hostility.

The unenthusiastic economic environment was reinforced by the hostile policy environment. The UPA government’s policy inaction and missteps put off valuable private investment, which could have generated growth and jobs, at its own peril. A noted industrialist lamented the state of affairs, saying, “You may have the prime minister’s office saying one thing and maybe one of the ministers having a different view. That doesn’t happen in most countries,” “You wouldn’t have a seven-or eight-year wait to get clearance for a steel plant.

In the UPA government, decision-making came to a standstill due to corruption and scandals in defence, compromising defence preparedness. The government delayed the acquisition of artillery and anti-aircraft guns, fighters, submarines, night fighting gear and a host of equipment upgrades.

Aadhar in India, a symbol of digital empowerment, too has suffered at the hands of UPA. Aadhar, introduced by UPA in 2006, was the tangible development of the idea of a ‘multipurpose national card’ proposed by the Vajpayee-led NDA government, to be issued based on a National Register of Indian Citizens. The Registrar General of India initiated a National Population Register (NPR) programme while the former Planning Commission supervised the Unique Identity project. The UPA government could not establish any sense of common purpose, and there were wide inter-ministerial differences in the scope, purpose and implementation responsibilities. It was only NDA’s re-imagination of Aadhaar that energised Aadhar, making it purposeful as a tool of empowerment that cuts away middlemen, helps facilitate direct subsidies to the poor deseeding duplicate beneficiaries, and brings authenticity to transactions. The story of Aadhar under the UPA government is a story of ineffective decision-making, little sense of purpose and policy failure.

Under the UPA government, public finances were brought to a perilous state. For six consecutive years between FY09 to FY14, the ratio of India’s Gross Fiscal Deficit (GFD) to Gross Domestic Product (GDP) was at least 4.5%. It was between 4.5% and 5% of GDP in three out of the six years, between 5% and 6% in one, and more than 6% in two years. The revenue deficit rose more than four times from 1.07% of GDP in FY08 to 4.6% in FY09. It rose further to 5.3% in FY10, declined slightly to 3.3% in FY11, and rose again to 4.5% in FY12.

The banking crisis was one of the most important and infamous legacies of the UPA government. When the Vajpayee-led NDA government took office, the Gross Non-Performing Assets (GNPA) ratio in Public Sector banks was 16.0%, and when they left office, it was 7.8%. In September 2013, this ratio, including restructured loans, had climbed to 12.3% largely because of political interference by the UPA government in the commercial lending decisions of public sector banks. Worse, even that high percentage of bad debts was an underestimate.

One such foundation that was severely weakened by the UPA government was price stability. Inflation raged between 2009 and 2014 and the common man bore the brunt. High fiscal deficits for six years between FY09 and FY14 heaped misery on ordinary and poorer households. Over the five-year period from FY10 to FY14, the average annual inflation rate was in double digits. Between FY04 and FY14, average annual inflation in the economy was 8.2%.

Ironically, the UPA leadership, which seldom fails to take credit for the 1991 reforms, abandoned them after coming to power in 2004. Even as the country was standing at the cusp of emerging as a powerful economy, little was done by the UPA government to build upon the strong foundation laid by the previous NDA government.

In the years between 2004 and 2008, the economy grew fast, thanks to the lagged effects of the reforms of the NDA government and favourable global conditions. The UPA government took credit for the high growth but did little to consolidate it. The failure to take advantage of the years of high growth to strengthen the budget position of the government and invest in infrastructure to boost future growth prospects stood exposed.

The UPA Government inherited a healthy economy ready for more reforms, but made it non-performing in its ten years. In 2004, when the UPA government began its term, the economy was growing at 8% (with industry and services sector growth above 7% each and a resuscitating agriculture sector growth above 9% in FY04) amidst a benign world economic environment.

The Economic Survey of 2003-04 noted, “The economy appears to be in a resilient mode in terms of growth, inflation, and balance of payments, a combination that offers large scope for consolidation of the growth momentum with continued macroeconomic stability.”

First, it seeks to apprise the Hon’ble Members of the Parliament and the people of India, of the nature and extent of governance, economic and fiscal crises that were bequeathed on this government when it assumed office in 2014.

Second, it informs the Honourable Members of the Parliament and the public about the policies and measures that our government took to restore the health of the economy and make it vigorous and capable of fulfilling the growth aspirations of the people in the present and in the Amrit Kaal.

Third, in doing so, it hopes to generate a wider, more informed debate on the paramountcy of national interest and fiscal responsibility in matters of governance over political expediency.

Fourth, “to commit ourselves to national development, with new inspirations, new consciousness, new resolutions, as the country opens up immense possibilities and opportunities.”

White paper is divided in 3 parts:
In Part 1, the macroeconomic situation of India under the UPA government is discussed.

Part 2 gives current status of the various corruption scams of the UPA government.

Part 3 shows how we turned the economy around, rebuilt the country’s image and rekindled people’s hopes and aspirations for a better future.

Union Finance Minister Nirmala Sitharaman lays on the Table a copy of the ‘White Paper on the Indian Economy’ today, in Lok Sabha pic.twitter.com/oYFwUHtSeE

— ANI (@ANI) February 8, 2024

The BJP on Thursday hit back at the Congress over its ‘black paper’ against the Modi government, claiming that the opposition party has brought it to hide its “black deeds” and is in pain as it wants action in corruption cases stopped.

“But this will not happen. PM Modi has made it clear that there will be no compromise on the issue of corruption. There is no place for those who have looted (public money). We will expose your black deeds to people,” BJP leader Ravi Shankar Prasad said after Congress president Mallikarjun Kharge released a “black paper” to highlight the alleged failures of the central government.