New Delhi: Opposition parties Tuesday attacked the government over the current state of the Indian economy, saying it has lost control over financial matters of the country and that it would be better to go for early elections.
Opposition leaders cited rising prices, slowdown in growth and depreciation of rupee among the serious problems facing the economy and said the government's policies had created uncertainty and despondency in the country.
Participating in a debate on the economic situation in the country, former finance minister and BJP leader Yashwant Sinha said the government had lost control over the economy. So it is better that UPA's exit from power to bail the country out of the ongoing economic crisis.
"Paralysis of decision-making is the problem," he said, attacking the government's economic measures on a day when the rupee tumbled to 66 against a dollar and the Sensex tanked nearly 600 points.
Sinha said the large fiscal deficit had affected inflation. "If you run a large fiscal deficit then it will have an effect on inflation. A large fiscal deficit will spill over to current account deficit," he said. "It's a vicious cycle."
Sinha mentioned that raising the import duty on gold alone will not solve the problem. "Gold is not the only commodity responsible for the situation."
Sinha mocked at the government's attempt to keep foreign exchange in the country.
He also slammed the government's policy to import coal when it could ask Coal India to increase production.
He criticised that the government has increased consumption expenditure which in turn has impacted inflation in the country.
"We don't want this government anymore. Let us go to the people now. If you have courage, let us go to the people. There is only one solution (to the economic problems), go. Let people decide," Sinha said.
Earlier initiating the debate, CPI leader Gurudas Dasgupta said: "The country is facing a massive disaster and economic tsunami because of reckless policies of the government."
And the government should take responsibility for the state of "despondency, fear and uncertainty", he said.