Gandhinagar, 27 November 2013

Following is full text of the statement by Gujarat Government Spokesperson and Finance Minister Shri Nitinbhai Patel in response to the statement of Union Finance Minister Shri P Chidambaram on 27th November 2013:

On 27th November 2013 the Union Finance Minister Shri P Chidambaram made a remark with reference to a statement by the NDA’s Prime Ministerial candidate Shri Narendra Modi on the value of the Rupee vis-à-vis the Dollar. True to the style of the Congress Party, Shri Chidambaram’s remarks are a classic example of selective usage of information combined with twisting of facts and figures to demonstrate untruths.

Shri Narendra Modi has often commented on the UPA’s mismanagement of the Indian economy, something that is manifested by the new lows the value of the Rupee has been touching throughout this year.

Showing undue haste to prove Shri Modi wrong in order to impress his political masters, the Finance Minister said that the value of the Rupee decreased from Rs. 39.49 to a Dollar in March 1998 when the NDA government took over to Rs. 45.33 to a Dollar when the NDA left office in May 2004. In percentage terms, this comes to a decrease of 14.78%.

What Shri P Chidambaram is not telling the nation is his own record as Finance Minister under 3 Prime Ministers and in 4 Governments in the last 17 years during which the value of the Rupee touched record lows.

Shri P Chidambaram was the Finance Minister of India during the United Front Governments of Shri HD Deve Gowda and Shri IK Gujral from June 1996 till March 1998. On 3rd 34.84 to a Dollar. When Shri Chidambaram left the Finance Ministry the value decreased to Rs 39.49, which in percentage terms is a decrease of 13.34%.

Coming to record of the UPA, in which Shri Chidambaram has had two stints as the Union Finance Minister, the value of the Rupee was Rs. 45.33 to a Dollar in May 2004 whereas as of 27th November 2013 the value is Rs. 62.14 to a Dollar. In percentage terms this comes to 37.08%. June 1996, the value of the Rupee was Rs.

Thus, it becomes important to remind the Finance Minister of the following points:

• The value of the Rupee decreased by 14.78% during the 74 months in which the NDA was in power but during the 21 months in which the United Front was in power the value of the Rupee decreased by 13.34%. One shudders to think what would have happened to the Rupee if the United Front would have continued in officer longer.

• The decline in the value of the Rupee between March 1998 and May 1999 that Shri Chidambaram talks about must also be seen in the context of the Nuclear Tests conducted by India in Pokhran, Rajasthan in May 1998. The Tests were followed by heavy sanctions from the world community due to which economic growth was affected. Instead of lauding the NDA government under Shri Atal Bihari Vajpayee for demonstrating India’s might in front of the world and even steering the economy through the tough times, Shri Chidambaram is falling prey to petty politics.

• From May 1999 till May 2004, the value of the Rupee declined by 5.81% to a Dollar. The decrease is lower than the decline from March 1998 to May 1999 in the wake of the Pokhran Tests, thus demonstrating how the NDA government streamlined the economy in such a short span of time.

• It is during the Ministership of Shri Chidambaram that the Rupee has broken all records of touching all time lows, including Rs. 68.80 to a dollar in August 2013.

• It is under Shri P Chidambaram that the Rupee has witnessed record single day falls, which are unprecedented in India’s history.

Therefore, one hopes that Shri P Chidambaram concentrates on his responsibility as the Finance Minister and attempts to solve the economic problems of the people rather than trying to score political brownie points in a time when the poor are reeling under extreme price rise and the youngsters are not getting enough opportunities.