NEWS
ANALYSIS
SPECIALS
INTERVIEW
CAMPAIGN TRAIL
ISSUES
GALLERY
MANIFESTOS
OVERHEARD
INDIA SPEAKS!
DISCUSSION GROUP
CHAT
PREVIOUS RESULTS

Manmohan Singh warns of major economic crisis ahead

Senior Congress leader and former finance minister Manmohan Singh said today that the country was heading for a major economic crisis, including a sharp rise in prices, if the present trend of fiscal management continued.

Some prices, like that of diesel, are kept under artificial control, but the nation is heading for an accelerated inflation, Manmohan Singh said.

He criticised the BJP and its allies for their move to introduce a legislation to restrict all higher posts in executive, judiciary and legislature to natural-born Indians, and said this was ridiculous since it was intended only to checkmate Congress president Sonia Gandhi. They should know that the Indian Constitution provides equality of status to all Indian citizens and there cannot be any discrimination on the basis of caste, region, sex or place of birth, he said.

If they indulge in any such misadventure they should keep in mind the fate of millions of non-resident Indians who could be discriminated against in the United States, the UK and other countries, he said. I hope they realise the gravity of their proposal.

Dr Manmohan Singh, who is in the middle of active campaigning in south Delhi from where he is making his maiden attempt to enter the Lok Sabha, said the Sangh Parivar was waiting for the BJP to get a majority. If it happens, the monster would show its real colour, eat away smaller parties and implement its own dangerous agenda, he said.

Replying to a question regarding the NDA's manifesto statement that it would give the economic reform process a swadeshi twist, Manmohan Singh said the BJP had been misleading the people in the name of swadeshi.

"They always put some obscurantist ideas, as shown in the 1998 manifesto," he said. Was there any corelation between what they said and what they did when came to power?," he asked.

Finance Minister Yashwant Sinha's first budget caused tremendous harm to the country and they made some efforts in the second budget to correct the mistakes, he said. The Congress had already established movement in the right direction and if the BJP was right it should have changed the course of reforms, he said.

"This opportunist alliance makes false appeals to come to power, but their obscurantist ideas have no relevance in the country," he said.

Referring to the BJP's claim of achieving the lowest inflation rate and highest foreign exchange reserves, Manmohan Singh said this improvement owed nothing to Prime Minister A B Vajpayee or his government. They should thank the Congress government for the correct directions and initiatives.

"This year the harvest is fine and they should thank god and farmers for it," he said.

He said the all-India price index was showing an annual increase of 7-8 per cent and money supply around 18 per cent. If the present trend continued there would be sharp increase in prices and the country would head for a major economic crisis.

He said diesel prices should be related to import parity rice, but the government has not done it. In the next few months diesel prices would have to increase by 25-30 per cent and this would lead to price rise. The artificial slump would lead to accelerated inflation.

Replying to another question, Manmohan Singh said the BJP had not given up their stand on the construction of a Ram temple at Ayodhya, changing article 370 of the Constitution and bringing in a common civil code.

"There is no change of heart and they are only waiting for an opportunity. They want to get into power and stay there so that they can implement their own programmes," he said.

"The Sangh Parivar, which had criticised the government's economic policies and its stand on Pakistan, was silent now because they wanted Vajpayee to come to power," he said.

"The BJP government was actively involved in the atrocities against Christians in Gujarat. But Vajpayee did not do anything to stop the atrocities. The prime minister also did not do anything when the Maharashtra government threw away the Srikrishna commission report or when the Vishwa Hindu Parishad and Bajrang Dal launched a hate campaign," he said.

Referring to the performance of the government on Kargil, he said the political leadership should explain how the intruders entered Indian territory. The prime minister and the defence minister were sleeping, complacent after the bus ride. A non-performing government could not protect the country's territory, he said. "We are thankful to our soldiers for their excellent contribution," he said.

Refuting the BJP's accusation that he was an outsider in Delhi, Manmohan Singh said, "This shows their nervousness and lack of self-confidence.

"How is that Vajpayee is contesting from Lucknow and L K Advani from Gandhinagar," he asked. The BJP is hurting national sentiment by encouraging narrow regional and sectional identities, he said.

Manmohan Singh said he was not seeking votes in the name of caste or community. All right thinking people who want a humane and cohesive society should support the Congress, which alone can ensure an India based on tolerance and equality. Secularism should be the bedrock of India," he added.

Regarding the capital's problems, he said it required a high quality and regular supply of power, basic civic amenities, proper drinking water, affordable health care, better sewerage, a sharp improvement in the quality of education in government and municipal schools, better transport and improved law and order. He said he would work to ensure relevant steps were taken.

If there is a Congress government at the Centre, it would strengthen the hands of Chief Minister Shiela Dikshit, who has grappled with these problems," he said.

Tell us what you think of this report