CHENNAI, June 13: Former Union Finance Minister P. Chidambaram on Saturday predicted clouds of disaster over the Indian economy as a consequence of the BJP's maiden budget. Addressing media persons at the TMC headquarters in Chennai, along with party chief G.K. Moopanar, the former Union Minister said the high deficit of Rs. 3,600 crore would lead to inflation and a balance of payment crisis which was bound to create a `macro economic instability'. The budget would also `slow down' the pace of the reform process launched by the UF Government, he added.The 1990-91 scenario following the introduction of the new economic policies would be recreated with foreign investors pulling out of the country, he warned, adding that the Financial Institutes had already begun doing so.
While the UF Government had brought down inflation to 5 per cent, the figure was likely to go up to eight per cent by middle of this year and 10 per cent at the end of the year. This would bring about disastrous consequences, hesaid.
``If Swadeshi budget means inflation, high interest rates and savage taxations, then I suppose it is Swadeshi,'' Chidambaram said, mocking the BJP budget. It was obvious that the BJP Government was facing ``not only external pressures but also internal pulls and pressures.'' It was apparent from the several announcements of changes in the Budget after it was released, that ``neither were any discussions held nor was sufficient homework done''.
``I am really sorry for the Finance Minister's pitiable plight,'' he remarked.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
