Let us go to people: Yashwant Sinha

Last Updated: Tue, Aug 27, 2013 14:18 hrs

New Delhi, Aug 27 (IBNS) With the rupee free fall continuing, former finance minister and opposition Bharatiya Janata Party (BJP) lawmaker Yashwant Sinha said the government should go to people to seek their verdict having ruined the economy with wrong measures as they made Finance Minister P Chidambaram the target of their attack.

Speaking in Parliament lambasting the government and Finance Minister P Chidambaram, Sinha said: "Let us go to the people now and let them take a decision on the government."

He said the government is an incompetent doctor who "doesn´t inform the patients of the possible side effects of the treatment."

He said the government should go because they destroyed the economy.

He also referred to policy paralysis in the government.

While the rupee fell, Union Finance Minister P Chidambaram in Parliament defended the government saying India is on the path of fiscal consolidation as more dollars are spent than earned.

"Challenges will be there but we must have the courage and clear headedness to fight these challenges. And with your help, we´ll overcome these challenges," he said.

He said in Rajya Sabha answering questions from Opposition: "At the moment, we believe the value of the rupee has overshot its true value. We can correct it only by taking medium and long term measures. I cannot say whether the rupee will appreciate... nobody can say that."

"It appreciated in Feb 2013. It came under pressure in May 2013. Rupee will find its level. Our inflation is high, current account deficit has caused concern among investors and analysts, we have to still communicate and once confident increased, true value will get reflected," he said.

He said "we allowed the fiscal deficit to breach and CAD [Current Account Deficit] to swell because of the certain decisions between 2009-2011 after the collapse of the US economy in 2008."

He said the Cabinet Committee on Investment (CCI) has cleared 18 power projects worth Rs 83,772 crore.

The rupee hit an all time low on Tuesday breaching the 66 mark against the dollar.

The rupee, which is partially convertible, traded at lowest on Tuesday and it crossed the all-time record low of 65.56 last week.

As the rupee continued its free fall, the share markets also tumbled. BSE Sensex fell by 600 points below the 18,000 mark. Nifty was also below 5,300 levels, falling by about 200 points.

The rupee fell over 2.1 per cent against Monday´s close of 64.30.

More from Sify: