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Arun Jaitley terms opposition comments on economy ‘exaggerated’

The minister said there was no demonetisation effect visible as there was currency available with people in order to make the purchases.

By: PTI | New Delhi | Updated: December 29, 2017 9:35 pm
Arun Jaitley Union Finance Minister Arun Jaitley. (Express file photo)

Finance Minister Arun Jaitley on Friday dismissed as “exaggerated” the suggestion that India’s growth rate plummeted to an all-time low, saying that for the last three consecutive years, the country has remained the fastest growing economy in the world.

Jaitley’s remarks came after TMC MP Saugata Roy said the country’s growth rate plummeted to an all-time low of 5.7 per cent in the first quarter of 2017-18 and showed only a small rise in the second quarter.

“The honourable member’s phraseology, with utmost respect to him, is somewhat exaggerated. Our economy, for three years in a row, is the world’s fastest growing economy,” he said in Lok Sabha during the Question Hour.

The minister said this year, even the IMF and the World Bank have said that by 0.1 per cent, India will be the second fastest growing economy.

“Therefore, to exaggerate that situation to say that we have hit the bottom and that it is a ‘rot’ that has set in is somewhat not correct,” he said.

When Roy clarified that he used the word “rut” not “rot”, Jaitley said “rut is worse than rot”.

“It is somewhat an exaggerated explanation or analysis as far as the economy is concerned. Let me tell you that in the first quarter, if one analyse the data in detail, the services sector rose by 8.7 per cent which was quite robust, which actually meant that people were making purchases,” he said.

The minister said there was no demonetisation effect visible as there was currency available with people in order to make the purchases.

“It is because the 1st July date for GST has been announced in advance, the destocking itself was taking place and manufacturing for that quarter had remained suspended which we have seen in the next quarter that it has suddenly picked up.

“The second quarter detail itself reflects that. All indications seem to suggest that in the coming quarters the curve is going to be on an upward swing,” he said.

Jaitley said as far as expenditure is concerned, in the second quarter, the manufacturing sector has touched seven per cent level.

“Therefore, when the manufacturing sector touches seven per cent level, to say that the government should go in for tax cuts and for larger fiscal deficits, which are measures the government takes in extreme situations, is not proper,” he said.

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  1. Andrew Moore
    Dec 30, 2017 at 2:28 pm
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      Dec 29, 2017 at 11:52 pm
      Growth rate that has plummeted could rise in coming months, but remember it will be initiative of CITIZEN, not government. Wherever government is supposed to "give" something there is continuous decline or in other words government support has plummeted. Best example is, plummeting interest rates on small savings schemes. Can Mr.Jaitley say that interest rates on small savings schemes shall rise in next few months?
      1. Suhas Gha
        Dec 29, 2017 at 10:35 pm
        Arunjee, there should be smart objective for major decision affecting 125 cror people. I hope u understand what is the meaning of smart objective. S for specific M for measurable A for achievable R for realistic M time bound. The objectives are to be decided at the begining and not at the end. Tell this country, which objective of notabansi falls in above category. And dont tell that this is textbook theory and can not be practicle. U and modi are adhering predetermined conclusion on impact of notabandi and give explaination to support that predetermined conclusion about achievement . U changed objectives half way by bringing degital economy in picture. Same is for hurried implimentation of GST. When u are going to come out with truth. I heard someone saying that bold decisions are taken when situation is healthy and capable to take shock. That means u agree that economy handed over to you was healthy. Then why shout for 60 years of misuse.
        1. Socrates Santos
          Dec 30, 2017 at 3:49 am
          It would be smarter if you let us have an identical analysis of the CONgress government until 2014. Everyone will come to know how many SMART objectives did the CONgress put forth even in the last tenure from 2009-2014. Perhaps the only SMART objectives that the country remembers are the scams being achieved in a specific, (sometimes) measurable and a time bound manner. LoL.. Lowering interest rates on savings will lead to drop in the interest rate that a bank charges for lending loans - a major driver of business investments - leading to rise in much-needed employment. So do not try, doesn't help to pander useless facts and propaganda against this government that is working in the interest of MOST of the people in the country, but understandably cannot satisfy the greed of everyone.
        2. Truth Truth
          Dec 29, 2017 at 10:25 pm
          Jhootley,,,,,,,Let’s keep the Opposition aside, your own BJP guys including SubSwamy have said that DeMon was a disaster and that Feku had asked CSO to fudge all Economic-data just like he faked his degrees !!! 👿👿👿
          1. Socrates Santos
            Dec 30, 2017 at 4:01 am
            Any guesses why a highly degreed, PhD, Doctrate like Dr. MM Singh, our ex-PM is having to mortgage his education, degrees and respect to a college-drop out like RaGa and his not-known-what-degreed Mom? There was a book by an ex-RAW official (i forget the name of the book at this time) in which he stated that the university where Ms. Mano claimed to study and meet Rajivji, that university did not have any record of her being there. Want more fakeness?
          2. Ratwsa Khan
            Dec 29, 2017 at 10:01 pm
            Mr Jaitley, you are really the spin master of BJP. You have a bad habit of changing your own statements frequently. People deposited all the money in the bank but you are now saying they had the cash to do transactions. Where did they get the money from? Did you put money underneath people's pillows? Kindly develop the habit of accepting the fact and that will enable you to earn confidence of the people on you. By twisting the facts you are only downgrading yourself.
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