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Economic crisis in India is UPA's creation: BJP

The Bharatiya Janata Party (BJP) on Tuesday said that the present economic crisis in the country is not the creation of global financial crisis but because of the mismanagement of the economy by the UPA government.
"The mismanagement of the economy had already led to several major imbalances such as the high fiscal deficit, high current account deficit, elevated inflation levels, and a collapsing real estate sector," the BJP said in a statement.
"None of these is the creation of the recent global financial crisis. All of them are directly the result of the complacency and the cavalier attitude of the UPA government which slept on the wheel while the crisis was brewing, in fact in many ways contributed to it by its acts of omission and commission," the BJP added.
"Why a liquidity crisis today? Is it because of the global crisis?" the party asked. "Certainly not. The liquidity crisis is the UPA government’s own creation," it charged and said that the BJP had always held that the UPA government went about the wrong way to tackle inflation.
"It totally ignored the supply side which was responsible for this inflation. Instead, it went about tightening money supply and raising interest rates which not only sucked liquidity out of the market, it also made money dearer," the BJP reasoned.
It further said that the UPA government took these monetary measures at a time when its own fiscal deficit had reached unsustainable level. "The withdrawal of their investments by the FIIs has added to the problem only in a small way," the BJP said.