P Chidambaram commends Economic Survey's restraint

NEW DELHI: Former finance minister P Chidambaram commended the restraint shown in the Economic Survey and the fact that it didn’t “point an accusatory finger” at the previous government.

“I am glad that the ES has acknowledged the measures taken by the UPA government on the macro stabilisation front and the successes achieved in containing the current account deficit and reducing the fiscal deficit,” he said in his emailed comments.

“I am also glad that the ES has noted several significant developments--the increase in foreign exchange reserves; the decline in WPI inflation from 8.9% to 7.4% to 6.0%; and the restoration of exchange-rate stability.”

He said policy changes need to be implemented quicker than set out in the survey. “I am disappointed that the ES envisages a five-year period to ‘put in place’ the reforms followed by a period within which the economy would fully absorb the new environment,” he said. “I would urge the government to show a greater degree of urgency and spell out specific steps that it will take according to a definite timetable.”