Koppal: Basavaraj Rayareddy, the economic adviser to Karnataka Chief Minister Siddaramaiah, on Saturday alleged that the country is facing an 'economic emergency' and attributed the falling value of the rupee, rising prices, and increasing unemployment to the economic policies of the central government.
Rayareddy criticizes Modi's economic policies
Addressing a press conference in Koppal, Rayareddy strongly criticized Prime Minister Narendra Modi's economic policies, stating that the nation's financial situation is deteriorating with each passing day. He argued that the current economic challenges are a direct result of mismanagement and flawed strategies at the Centre.
Fuel price hike and West Asia conflict
Rayareddy dismissed the government's justification linking the rise in petrol and diesel prices to the West Asia conflict, asserting that there is no direct connection between the war and fuel price increases. He alleged that fuel prices were raised by Rs 3 per liter while citizens are advised to reduce consumption, and warned of another possible hike within 15 days.
Gold prices and import duty
On the surge in gold prices, Rayareddy noted that the cost of 10 grams of gold has reached Rs 1.6 lakh. He highlighted that India's demand for gold has increased, but domestic production remains low, with Hutti Gold Mines producing only about 1.5 tonnes annually against a national requirement of nearly 900 tonnes. He accused the Centre of burdening the public with higher taxes by increasing customs duty on gold imports.
National debt and borrowing
Rayareddy claimed that India's total debt has risen sharply, from Rs 52 lakh crore before 2014 to Rs 216 lakh crore currently. While acknowledging that borrowing itself is not wrong, he expressed concern over taking loans without corresponding increases in production and revenue generation.
Rupee depreciation and trade imbalance
The adviser said the weakening rupee is contributing to higher oil prices, and noted that exports have declined while imports have increased. He emphasized that the situation will improve only with an increase in foreign investment.
Expenditure on Prime Minister's travel
Criticizing the Prime Minister's expenditure, Rayareddy questioned the need for purchasing a new aircraft for official travel and alleged that public money is being spent unnecessarily.
Political developments in Karnataka
Regarding state politics, Rayareddy expressed confidence that Chief Minister Siddaramaiah will continue in office for another two years. He indicated a possibility of cabinet expansion or reshuffle before May 30 and stressed the need to provide opportunities to new faces. He also stated that there are no corruption allegations against Siddaramaiah and that several leaders, including Mallikarjun Kharge, are qualified to become chief minister.
