No surprise! The Government doesn’t have a plan to bring down the debt and increase Indian Rupee reserve! In an answer to a question on the government’s plan or road map to contain the debt and increase the Indian Rupee reserves, the PM, during the question hour on the 18th just gave a vague answer stating that some organizations were looking on a new debt in a step-by-step manner, in his typical fashion, chose to avoid the question and started rattling some numbers. The PDP during the election campaign used the debt and the INR issues to gain mileage. As soon as they came into office, the opposition questioned them on their debt and rupee policies to which they admitted that they were following the same policies of the past government. Yet, they have kept on referring to the two issues as being a problem. The PM mentioned that they had managed to bring down the debt but that was the RMA’s Indian Rupee overdraft debts, (repaid presumably with the Rs. 5 billion so generously given by the Government of India). The RMA’s debts were short-term overdrafts and it was a one-time measure. He mentioned that it was made possibly by the currency swap arrangement. Only he didn’t mention that the currency swap arrangements were made by the previous government. As for the main part of the long-term debt, namely for the hydro-power projects and for the socio-economic development projects, noting have been done. The debts will not go up only if they stop obtaining further loans. Can the nation move forward if we stop taking loans? Would any government want to stop viable project loans and with huge grants elements as in the case of hydro-power loans from the Government of India? Would one want to stop availing highly concessional, very long-term, negligible interest rates development loans from the ADB, World Bank, IFAD and the like? Its about time the government make credible decisions and convince the people with practical achievements. (Submitted by Economic Review Committee)
Posted on: Fri, 21 Nov 2014 05:10:29 +0000
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