BJP's inflation rap : FM hits back with data

'The NDA govt did not have the vision or compassion for inclusive growth'

The rise in inflation to 8.24 per cent this week also raised the political heat a notch or two with Finance Minister P Chidambaram hitting out at the BJP's criticism of the UPA government's handling of the situation.

"I regret to point out that the (BJP's) resolution (at the National Executive meeting of the party) is an exercise in self-deception and is aimed at spreading disinformation," he said. He admitted that "we have not overcome all our problems. We admit inflation is a problem," but added that the government was yet to hear any "concrete suggestions" from the BJP-NDA on how to moderate the price rise.

The BJP had said that the UPA government's decision to hike fuel prices was an act of "economic terror" unleashed on the people.

Chidambaram said the UPA government did not enjoy benign global crude oil prices, as did the NDA regime.

Giving out inflation figures under the NDA regime, he said, "In 2000-01, in 48 out of 52 weeks, the WPI was over 6 per cent; in 22 of those weeks, it was over 7 per cent; and in 12 of those weeks, it was over 8 per cent. These are facts that cannot be wished away".

Countering the BJP's claims that it inherited a bankrupt economy and left behind a strong economy, Chidambaram said the NDA government did not have the vision, compassion, fiscal space or financial resources to undertake schemes and programmes to directly benefit the poor and make growth inclusive.

The BJP, on its part, demanded the resignation of Prime Minister Manmohan Singh. "You, the economist Prime Minister, cannot manage the economy, cannot manage India. Please quit," said BJP spokesperson Ravi Shankar Prasad.

He claimed inflation had reached new heights during Singh's tenure as finance minister in the PV Narasimha Rao government. The situation is similar when he is prime minister, Prasad said.

"Today, the inflation rate has increased further to 8.24 per cent. On March 31, Finance Minister P Chidambaram had promised that recent measures taken by the government would show results in two weeks. But now it has been eight weeks and sufferings of the common man have grown by the day," Prasad said.

Even a bumper harvest had failed to improve the situation he said. "Agriculture Minister Sharad Pawar said we have had a bumper crop. This has not brought any relief. It is all due to the UPA's mismanagement of the food economy," Prasad said.