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UF's economic failure has weakened nation, says Congress

The Congress on Friday charged the United Front government with failure at maintaining economic discipline and said this has considerably weakened the nation.

A draft resolution moved by former finance minister Manmohan Singh at the All-India Congress Committee plenary session in Calcutta said the party was ''greatly concerned'' at the economic developments since the coming to power of the United Front government at the Centre.

It said a ''firm determination'' was needed to tackle the economic situation.

The resolution said the rate of economic growth, particularly industrial production, has considerably slowed down and the sluggish industrial production and imports have led to an uncertain fiscal situation.

The mounting oil pool deficit constitutes a serious threat to fiscal stability while production and investment in infrastructure sectors such as power and petroleum have considerably slowed down.

The banks have plenty of resources but were reluctant to lend while exports seem to have lost the dynamism they acquired during Congress rule. Despite a significant increase in food production, food prices have sharply risen because of mismanagement, the resolution added.

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