In a robust reply to the budget discussion in Rajya Sabha, Union Finance Minister Nirmala Sitharaman took a swipe at the previous UPA government’s handling of the economy, while showcasing the NDA’s achievements in managing inflation.
Sitharaman pointed to statements by a former Reserve Bank Governor who alleged that the UPA pressured the RBI to lower interest rates and present a misleadingly optimistic growth picture. “Fragile 5 economy is a fact which was before them, but instead of acting on it, they put pressure on the RBI,” she stated.
Watch FM give a detailed report India’s inflation history below:
#WATCH | Union Finance Minister Nirmala Sitharaman replies to budget discussion in Rajya Sabha, she says "…It is not just me who is talking about what kind of things happened then (during UPA) based on eminent people's words…One of the former Governor of Reserve Bank wrote in… pic.twitter.com/gAMHuaBHj9
— ANI (@ANI) July 31, 2024
Highlighting the proactive measures taken by the NDA government, Sitharaman noted the reduced average inflation of 4.5% from 2014-19, well within the RBI’s target range of 2-6%. She emphasized that India’s inflation during 2020-23 was much lower than the global average, attributing this to the government’s competent and proactive steps, even in the face of challenges like COVID-19.
“We managed to control inflation to 5.7% from 2019-24 despite unforeseen challenges like the pandemic,” she said, contrasting this with the UPA’s average inflation of 8.1% over their two terms. She underscored that the NDA’s first term (1999-2004) saw retail inflation at only 3.8%, while the UPA 1 and 2 periods had much higher rates of 6% and 10.2% respectively.
Sitharaman also criticized Congress-ruled states for not reducing fuel excise duties to combat inflation. “When the conversation is about containing the price and bringing it down, the Congress government is increasing the price,” she said, referring to the recent hike in fuel prices by the Sukhu government in Himachal Pradesh.
The Finance Minister’s remarks drew a clear line between the economic policies of the NDA and UPA, asserting that the NDA’s approach has consistently prioritized stability and inflation control.