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Facing an attack over the economy amid the sliding rupee, Prime Minister Manmohan Singh on Thursday conceded in Parliament that the country was going through a "difficult" situation and had to reckon with the uncertainties created by global factors, like "new tensions" in Syria.
Singh made brief remarks in both the Rajya Sabha and the Lok Sabha, as concerns were expressed over the rapid depreciation of the rupee, with the Opposition saying there was panic in the country.
He promised to make a detailed statement on Friday. The Lok Sabha witnessed repeated adjournments amid the Opposition demand for an immediate statement from the PM. The Left and the All India Anna Dravida Munnetra Kazhagam members trooped into the Well in the Lok Sabha.
There was uproar in the Rajya Sabha too for some time.
"It cannot be denied that the country is faced with a difficult economic situation. And there are several causes. I do not deny that there are some domestic factors but there are also international factors, arising out of the changes in the US monetary stance," Singh said in impromptu remarks.
Apparently referring to the looming possibility of US strikes on Syria, he said "there are also problems created by the new tensions that are on the horizon in Syria and they have inevitable consequences for oil prices. So, we have to reckon with all those uncertainties."
He said he will make a statement on Friday as "I need some time to reflect on what I have to say.”
Later, in the Lok Sabha, he said, "I respect the concerns expressed by the members.”
As soon as the Rajya Sabha met for the day, Leader of the Opposition Arun Jaitley raised the issue of depleting value of the rupee, which has fallen 20 per cent against the US dollar this year and already breached the Rs 68 mark, and said there was "panic" as people did not know at what level the devaluation would stop.
Inflationary pressure would be twice as rising food prices, coupled with imported inflation in the form of rising oil prices in the global market, would lead to a serious situation, he said.
"It is a panic situation... We want to know from the Prime Minister what he has in his mind for reviving the situation. In a democracy, the buck stops at the Prime Minister and does not disappear," he said, adding, "The Prime Minister must take the House and the country into confidence".
Sitaram Yechury (CPI-M) said the country has "come back to square one" after 22 years of reforms under Manmohan Singh, as the economy was facing the same crisis as it did in 1991.
