BJP's cronyism drove economy to its lowest point: CPI-M

Accusing the Modi government of mismanaging the economy, the CPI-M on Thursday said that corruption and institutionalization of cronyism under the government had driven the Indian economy to hit its lowest point.

It said the aggressive pursuit of neo-liberal policy had forced the institutionalization of cronyism as the dominant feature of the government, leading to high-level corruption and scams "as is clear from the Rafale scam, demonetization and undermining the CBI and the RBI".

"The government's protective corporate partnership and sponsorship has led to the undermining of regulators, independent agencies and, obviously, well laid down procedures to ensure the principle of check and balance," the Communist Party of India (Marxist) said in a statement.

"Be it the Rafale deal, Pradhan Mantri Fasal Bima Yojana, the telecom sector shenanigans and the great bank robberies -- (they) have brought these elements into play with crony capitalism as the centrepiece," it said.

"Therefore, as opposed to popular perception, the terrible state of the Indian economy is not only the outcome of the mismanagement of the economic and financial situation, but driven by cronyism," the party added.

It said the new facts coming out about the Rafale deal had established the reality of the scam and nothing less than a Supreme Court monitored probe can bring out the truth and fix accountability.

About demonetization, the CPI-M said the declared objectives of the move were never designed to be achieved and questions now arose as to who benefited.

"Unusually large conversions have taken place in the Gujarat cooperative banks. Demonetization has destroyed the cash-driven unorganized and informal sectors. This has severely dented economic growth, but most devastating impact has been on employment," it said, adding that a Joint Parliamentary Committee probe was necessary into the entire exercise.

The party also accused the Modi government on undermining the independence of the Central Bureau of Investigation (CBI) and the Reserve Bank of India (RBI).

--IANS

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