BJP holds Centre responsible for economic recession

Patna, Oct 16 (UNI) The BJP today demanded the resignation of Union Finance Minister P Chidambaram for his alleged failure in handling economic recession.

BJP State Spoksperson Vinod Narayan Jha told reporters here that the financial mismanagement of the UPA government had pushed the country into severe economic slump.

He said the country was reeling under inflation due to the ''faulty economic policies'' that had resulted into economic recession and liquidity crisis.

''Dubbing it as global phenomenon, the Union government is trying to mislead the investors in a bid to shield its failures in handling the financial situation. The Finance Minister is diverting the attention of the common people from the actual causes,'' he said.

Mr Jha reiterated that the financial structure of the country had weakened due to the ''faulty'' economic policies.

He also asked the Centre's immediate intervention into the process of retrenchment of the employees by industrial houses in the wake of recession.

The tsunami in the bourses was an open testimony to the Indian economy and the liquidity crunch could not be handled by curtailing the CRR rates, he opined.

''At this point of time, it is the utmost responsibility of the Centre to instill confidence among the investors in the market,'' Mr Jha stated.

The high interest rate on the loans imposed by the banks had resulted into the liquidity crunch, the spokesperson said adding the rates should be slashed immediately.

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