Letters: The UPA's misadventures

Apropos the editorial "RBI runs out of room" (March 20), securing growth must no doubt be an overriding concern. But the other side of the picture needs to be given as much importance. Despite our economy being fairly insulated from the global downturn of 2008, the UPA-II - in a burst of neoliberalism - went in for massive welfare schemes under the guise of economic stimulus. The Reserve Bank of India has been firm on the reduction in policy rates being contingent on containing the fiscal deficit. Despite this, the government has been swayed by Fabian inclusiveness and power patronage. The government is still reluctant to learn lessons in fiscal prudence. The food security Bill could widen the existing fiscal gap. To top this, the government has eyes set on another Rs 1.5 lakh crore under the proposed National Right to Homestead Bill. It seems the government has forgotten that the 2008 global economic calamity was brought on in 2008 by a similar enthusiasm in the US - for large-ticket real estate misadventures.

R Narayanan, Ghaziabad

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