Policies of Centre responsible for financial crisis

Lucknow: The economy gets affected when policies are framed with political and electoral gains in mind, BJP leader Murli Manohar Joshi today said and demanded a debate in Parliament on the current economic situation of the country. "From the last few days Prime Minister, Finance Minister, financial advisor and RBI chairman all are expressing serious concern over economy of the country," Joshi said while talking to the reporters here.

Joshi said that he has moved a notice in the Parliament and with two more days left a debate should be held. "Nearly six months back I raised question in the Parliament and the Finance Minister sent a letter that there was nothing to worry about, fundamentals were strong and economy was heading towards growth," he said. If the fundamentals were strong what happened all of a sudden, why there was crisis and why value of rupee was falling, Joshi said.

"The finance minister is now saying that it is due to the effect in European countries… We cannot live in isolation, but we were connected even six months back," he said. Now the finance minister says that some decisions have to be taken and talks about austerity measures, he said. "Austerity measures would not bring economic reforms. The crisis is due to the wrong policies adopted in the last seven-eight years," he alleged. Joshi alleged that economy gets affected when schemes were framed with political and electoral gains.

"Mukherjee must tell which expenditure should be curtailed and how the value of rupee would be stabilised," he said. Due to devaluation of rupee foreign exchange reserve was depleting, there was loss in trade, and loan liability was rising, said the former Allahabad University professor. "Finance minister must tell people clearly that how this poor state of affairs would improve and how fundamentals would be corrected," he said. Declining forex reserve will increase crude oil bill, and the axe should not fall on the farmers in the name of austerity," Joshi said.

He said farmers were already facing tough situation and putting an additional burden may have bad impact on the economy. However, three days back, Joshi had supported Mukherjee`s assertion on retrospective taxation by saying that India could not be treated as a tax haven. "Nobody can stop us from enacting a law. Law does not debar any investor to invest. But you cannot invest without paying taxes," the BJP leader had said.