FM’s report: Economy good, growth high

With the economy living a dream every finance minister has — a 10.4 per cent growth in a quarter just before polls — it’s no ...

With the economy living a dream every finance minister has — a 10.4 per cent growth in a quarter just before polls — it’s no surprise that Jaswant Singh is on cloud nine. And he says he has reason to believe that this growth is sustainable.

Speaking to The Indian Express after the economy’s best-ever performance in a single quarter was announced since this exercise was undertaken in 1997-98, Singh said : ‘‘If we persist with our vision of concentrating on a second green revolution, building up strong infrastructure and managing the fiscal situation, we will be able to achieve even higher growth.’’

Jaswant Singh said that it was unfair to suggest that the RBI or the government was quiet on the issue of rupee appreciation just because it helped control inflation. ‘‘We have been in consultation with the RBI and have left the mechanism of handling this with them. There can be no public pronouncement on these issues on a daily basis. But let me assure you that even though inflation is a concern, it does not persuade us to take the steps of the kind that we are accused of taking in currency management or exchange rate management,’’ he said.

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When asked if it was right for the government to step in and police stock markets as on recent occasions had been done by

SEBI, with even the Intelligence Bureau being called in, Singh said : ‘‘I do not interfere with regulation, it’s the job of the regulator. I’m aware of the problems, but some of them are often overstated.

There are two injunctions of the Joint Parliamentary Committee (JPC) on the markets earlier which had made various suggestions on regulation of stock exchanges. What is important is that the regulator should not be inactive. When there is any unnatural activity, it is for the regulator to take note and act.’’

The Finance Minister said that this would in no way undermine the confidence of investors in the market. ‘‘I don’t think that confidence in the market is getting reduced because of some developments. I believe that free market is not a synonym for free-for-all. The freer the market, stronger is the need for regulatory mechanism. The Finance Ministry does not run SEBI. They take time, consult with us and take action. I don’t think that regulators work with the IB, though they is no debarring if the regulator comes across instances where there is a need for cooperation with other organs of the state.’’

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Asked if he was going slow in the ministry especially with elections coming up, he said he was not likely to shy from taking any decision that may be required for the economy just because elections were around the corner. ‘‘Management of the country’s economy is not a part-time job. If any decision is required to be taken, it will be taken. If there is any aspect which requires consultation with the Election Commission, we will do so.

“The management of the economy is not like a traffic signal — red, amber and green. Management is a green channel,’’ Singh said.

In Odisha, Modi mounts ‘loot tantra-vs-bachat utsav’ attack on Congress over GST

India5 hr ago

Prime Minister Narendra Modi Saturday hailed the revised Goods and Services Tax (GST) structures, saying the era of “double bachat (saving) and double kamai (income)” has arrived under the Bharatiya Janata Party rule. Addressing the ' Namo Yuva Samabesh' in Jharsuguda, Modi accused the Congress of indulging in “loot tantra (tactics)” while in power.

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