Comptroller and Auditor General (CAG) Sashi Kant Sharma today made a strong case for effective dealing with the menace of crony capitalism, saying that it adversely impacts competition and transparency.
He also underlined the need to curbing misappropriation of public funds which are needed for alleviating poverty and improving country's infrastructure.
Sharma was speaking at an event at Ankola in Karnataka.
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"...Misappropriation of public resources and the resultant phenomenon which is called crony capitalism where we find that competition and transparency are sacrificed, and favouritism and irregularities in transactions take place. So that is an area where we have to admit that we have to do something," he said.
Crony capitalism generally refers to a business environment where success depends upon close relationships between corporates and government functionaries.
He further said that although the country has made good progress in certain fields, there are areas which need attention of the government, according to an audio release.
Referring to problems like high unemployment, poor infrastructure and hygiene, health and medical facilities, Sharma said these the areas which needed investment.
Reserve Bank Governor Raghuram Rajan had also expressed concern about "crony capitalism" pointing out that it kills transparency and competition and hence is harmful to free enterprise, opportunity and economic growth.
"By killing transparency and competition, crony capitalism is harmful to free enterprise, opportunity, and economic growth," Rajan had said.
