New Delhi: Finance Minister Nirmala Sitharaman has lashed on her macroeconomics opponents by pointing at a massive amount of bad loans in state-run banks when the United Progressive Alliance (UPA) was in power. She accused the ex-PM Manmohan Singh and former Reserve Bank of India governor Raghuram Rajan for putting public sector banks (PSBs) through the worst phase.
She said this in a response to a question from the audience about Mr Rajan’s recent comment seen to be directed at PM Modi that only “internal cohesion and economic growth” and not “majoritarianism” will help strengthen India’s national security.
Ms Sitharaman has been fighting criticisms over a slowdown in the economy that threatens to burn key sectors from manufacturing to finance. She also announced a cut in corporate tax on September aimed at boosting the economy at the risk of widening India’s fiscal deficit.
She said, “I have no reason to doubt that Rajan feels for every word of what he is saying. And I’m here today, giving him his due respect, but also placing the fact before you that Indian public sector banks did not have a worst phase than when the combination of Singh and Rajan, as Prime Minister and the Governor of Reserve Bank, had. At that time, none of us knew about it.”