Union Minister Arun Jaitley has said that policies of the UPA to promote growth led to macro-economic instability. In a Facebook post, he said during the UPA regime, fiscal discipline was compromised and the banking system was advised to go in for reckless lending notwithstanding the fact that it would eventually put the banks at a risk.
And yet when the UPA moved out of power in 2014, the last three-year record, even in terms of growth, was less than modest. The policies of the UPA to promote growth led to macro instability thus producing a poor quality of growth, he added.
A debate is taking place over the National Statistical Commission (NSC) sub-committees estimates of GDP growth series with the 2011-12 base. Mr Jaitley has cited data on fiscal deficit, bank credit growth, inflation and current account balance from 1999 to 2017-18 to support his argument.
The NDA Government led by Atal Bihari Vajpayee went out of office in 2004 leaving behind an 8 per cent plus growth rate. Additionally, in 2004, the Government had the benefit of continuous incremental reforms from 1991 to 2004, he added.