UPA has failed on economic front: BJP

The BJP on Wednesday expressed grave concern over spiralling inflation and charged the United Progressive Alliance government with 'abject failure' in formulating a coherent economic policy, which has led to the disruption of the growth momentum in the economy.

An economic resolution passed by the BJP National Council meeting in New Delhi alleged that the Congress had allowed the Communists to do backseat driving at the Centre and was neglecting infrastructure, agriculture and infrastructure development.

"The BJP National Council is distressed to note that within less than six months of assuming office, the UPA government has disrupted the growth momentum in the economy, achieved by the Vajpayee government. Inflation, which was around 4 per cent during the NDA rule, has nearly doubled to levels that are the highest among important emerging economies," it said.

"If not corrected, these will push many sectors like housing, auto, construction and manufacturing into recession."

While bank deposit rates were 2 per cent below inflation, tax-free saving schemes were being "abruptly withdrawn", the BJP said.

"The UPA government's abject failure to formulate a coherent economic policy and to implement it resolutely is because, for the first time since independence, the Congress has allowed the Communists to do backseat driving at the Centre. They (Left) are arrogantly using their veto card on practically every important economic policy or decision."

The BJP expressed concern over the fall in agriculture production this year and said progress on infrastructure development in power, railways, ports, highways and rural roads has 'come to a stop.'

"The NDA government's ambitious river-linking project as been given a burial," the party said.

Pointing at the spiralling inflation and 'unprecedented rise' in the prices of all essential commodities, the resolution said: "The Congress party's election slogan Congress ka haath, aam aadami ke saath has proven to be as hollow as the party's earlier slogan of Garibi Hatao."

In view of the steep hike in India's oil import bill, the BJP asked the government to speedily promote the production of bio-diesel and ethanol, a measure that would also help farmers. Referring to worsening fiscal situation of almost all states, the BJP asked the Centre to seriously consider a one-time waiver of all the old debts incurred by the state governments.

"The party urges the Centre to remove restrictions on states to raise non-budgetary finances for development projects that are commercially viable," it said.

The BJP and all the BJP-ruled state governments, would soon write to the 12th Finance Commission to raise the states' share in the Central pool of tax revenues to 35 per cent, it added.

The party was also of the view that the Commission should allocate a separate, dedicated stream of at least 5 per cent of central resources directly to Panchayati Raj institutions.