Sliding rupee part of a global phenomenon, says Congress

Congress leader Shakeel Ahmed takes a dig at Yashwant Sinha's demand that the UPA govt resign and go for fresh elections

The slide in the rupee is a “global phenomenon”, was the Congress’ answer to the Bharatiya Janata Party (BJP)’s criticism of the government over the unfettered slide of the rupee and former finance minister Yashwant Sinha’s demand that “the government resign and go for fresh elections”.

Lashing out at Sinha’s suggestion that the government should quit, Congress leader Shakeel Ahmed on Wednesday took a dig at the senior BJP leader’s credentials. Ahmed tweeted, “Yashwant Sinha, who was removed from finance ministry by Atal Bihari Vajpayee, says the only option to improve the falling rupee is to remove this government.”

Congress sources were at pains to explain “the rupee depreciation was part of a global phenomenon.”

“Even other emerging economies like Brazil, South Africa, Indonesia are facing the same problem of currency depreciation,” said a senior Congress leader.

Rebutting Opposition claims that the United Progressive Alliance (UPA)’s Food Security Bill, (lampooned as“vote security” Bill) being passed in Parliament, had exacerbated the rupee slide, the leader categorically stated that there was no relation between the financial implications of the Food Bill and the present downturn of the rupee. “After all, the additional burden on the exchequer is negligible. For an economy as large as ours, we can easily cough up the additional burden of Rs 23,800 crore.”   

In fact, claim Congress leaders, had the 400 odd-amendments moved by the opposition which included demands for raising the allocation and entitlements been passed; it would have caused greater financial burden on the exchequer.

“UPA’s Food Bill model is a balanced one. On the one hand, the burden is sustainable and on the other, it takes care of the poor.”  

Defending the Food Security Bill as “sound economics”, Congress leaders substantiated it, stating that the Bill, which is aimed at tackling chronic malnutrition and hunger would help in “cutting down on health related costs” in the long run. To harness the demographic dividends of a young population would require a healthy work force and the Congress believes the Food Bill would go a long way towards ensuring that.

Questioning claims of the “bad timing” of launching the UPA’s Food Bill, the ruling party leaders argued that the Bill had been in the works for quite some time. “Had the Opposition not prevented the Bill from being passed in the last session, then these issues of the rupee slide and the Food Bill would not be raised at all.”

Party leaders recognise the fact that the continuous depreciation of the rupee is being perceived as the UPA’s incompetent handling of the economy and party managers confess that there is need to correct the perception. “We need to make the public aware of the global scenario and its impact on India” said a leader “but we can’t openly risk hitting out at the opposition – there are several Bills that still need to be passed in Parliament.” The Land Acquisition Bill is one among the many lined up for next week.