‘ Knee- jerk reactions’ to rising fuel prices may harm economy, says Piyush Goyal
Knee- jerk reactions to rising prices may harm economy: BJP
Amid the Oppositions’ attack over spiralling fuel prices and a growing demand to slash fuel prices, the BJP on Wednesday said “kneejerk reactions” will not help and may end up harming the economy by worsening the fiscal deficit and pushing up inflation.
Putting up a strong defence, Union minister Piyush Goyal said the government is working with a holistic view of the economy and has full confidence that people will support and respect the decisions taken in the national interest.
The Union minister also sought to explain the relentless fall in the value of rupee, saying it was over 68.86 during the UPA government, but it was “artificially” strengthened by infusion of billions of dollars in the market through loans which the Modi government had to pay. He claimed the real fall in the Indian currency is not more than ` 3 compared to its value in the UPA tenure. Accusing the Congress of misleading people by spreading lies, Mr Goyal also took a dig at its president Rahul Gandhi, saying he has little understanding of the issues of potato and onion and is unlikely to know any better of the economy.
Referring to the “Bharat Bandh” called by the Opposition Monday against rising fuel prices, the minister said that the fact that it was a “flop show” indicated that people know what is good for the country and for them.
“At times if you take a knee- jerk reaction to sort out one issue, it may end up harming the economy more,” Mr Goyal said.
He said the decision taken to solve a specific issue may have more harm than benefits and noted that the overall inflation rate was 4.17 per cent last month while it was more than 10 per cent during the UPA government.