Monday, August 18, 2008

Inflation and UPA's dismal record

At 12.44%, a 16 year high, inflation is a clear indicator of the government's failed economic policies. N.Ram acknowledges it in passing here. When he wrote an editorial on inflation, he saw silver lining in the spiraling inflation, which was then at 8.24% and constantly nudging upwards. On several occasions in the past, N.Ram has displayed poor understanding of economics and financial matters.

The Hindu : Opinion / Editorials : Paying and delivering
Further, spiralling inflation, which the government has been unable to contain, has deflated, to an extent, the euphoria the pay increases have generated.

On Shankar's point:
Pay is ok, what about work?
The overall fiscal deficit, taking into account off-budget times, runs therefore to about 7.5 per cent of GDP, as the prime minister's Economic Advisory Council has just noted, and not 2.5 per cent. As a result, after 18 years, India is more or less back where it started on the fiscal front.

Chindu has stood up for NREGA and other such profligate schemes in spite of its obvious impact on the economy. More recently, it justified the increased outlay for farm loan waiver in terms of administrative burden. Rarely has Chindu considered the economic implications of UPA's quixotic schemes.

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