The Union Finance Minister delivered a White Paper on the Indian economy, prepared by the Ministry of Finance, in the Lok Sabha. The government had previously declared in the Union Interim Budget its intention to release a ‘White Paper’ for comparing the economic achievements of the Congress-led UPA government over ten years with that of the BJP-led NDA government over the same period.
What is a White Paper:
A white paper is a well-respected, research-driven document that offers information, expert analysis, and the perspective of an organization or author on a topic or solution to a problem.
Governments typically use white papers to inform people about a specific issue, providing details on the problem’s nature, scope, and potential resolutions. Businesses and other organizations also frequently utilize white papers to showcase and promote their products.
An earliest instance of government white paper usage dates back to 1922 when then British Prime Minister Winston Churchill introduced one to articulate his government’s policy on Palestine.
Guidelines for White
In India, there are no precise regulations regarding the issuance or presentation of white papers.
The Opposition has the full authority to request a white paper from the government regarding matters where clarity is needed.
Highlights of White Paper
- The 58-page white paper has three main parts.
- Part 1 discusses the macroeconomic situation during the 10 years of UPA rule.
- Part 2 provides the current status of the various corruption scams of the UPA government.
- Part 3 shows how the NDA turned the economy around.
Objective of the White Paper
- The purpose is to inform the public about the governance, economic, and fiscal challenges faced by the NDA government upon taking office in 2014.
- It aims to detail the policies and actions implemented by the NDA government since 2014 to improve the economy’s condition.
- The goal is to initiate a wider and well-informed discussion on the significance of national interest and fiscal responsibility in governance, prioritizing these over political expediency.
Findings of White Paper
- During the UPA’s tenure, there were policy failures and scandals, including opaque auctions of public resources like coal and telecom spectrum.
- Following the 2008 Global Financial Crisis, the UPA government prioritized sustaining high economic growth at any cost, leading to significant deterioration in macroeconomic fundamentals.
- This approach resulted in elevated inflation, substantial fiscal deficits (representing borrowed funds to cover expenses), and a high proportion of non-performing loans in the banking sector, all of which hindered economic activity.
- Capital expenditure, as a percentage of total expenditure (excluding interest payments), decreased from 31% in FY04 to 16% in FY14, with the current ratio at 28%.
- The consequent neglect of infrastructure development and logistical challenges contributed to a slowdown in industrial and economic growth.
- Household health expenditure exhibited minimal improvement, while policy paralysis impeded defense preparedness.
Conclusion
- The white paper on the Indian economy acts as a means for the government to showcase its perspective on economic performance spanning the last twenty years.
- Nonetheless, critics contend that the document’s objectivity and comprehensiveness are questionable due to the selective use of data and the exclusion of vital economic indicators.
- Given the intricate economic hurdles facing the nation, a thorough and transparent examination becomes crucial for informed decision-making and public discussions.
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