Sunday, September 30, 2012

The Dream-Team's Wreck-Job

  • The Rural Employment Guarantee Scheme is a cesspool of corruption and is consuming Rs 100,000 crores. You are not only disfiguring the balance sheet of the country but also spoiling the work force of the rural areas. This has resulted in a huge budget deficit and that is one of the reasons why the rupee weakened. 
  • You also mismanaged the external front by liberalising your imports based on your stock market money. You have no reason to run a trade deficit of $120 billion with China and starve the local industries. Because the external front weakened, the cost of the economy went up by at least 25 per cent. 
  • This year, we will be depositing Rs 8 trillion in the banking system and the government will be borrowing Rs 6 trillion. If the people put money in the stock market, our government will become insolvent.
S Gurumurthy: Why did the economy go back to the 1991 position?

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