Wednesday, May 22nd 09:41 AM IST
 

Manmohan Singh will do better than Pranab Mukherjee as Finance Minister

R Jagannathan

After Pranab Mukherjee’s weak performance over the last four years, where growth has kept falling and inflation has stayed stubbornly high, the PM’s short-term stewardship of the economy can only improve matters. For one, due to Pranab’s seniority in the ministry, the PM had almost no say in economic issues. Among other things, he is said to have been unhappy with the retrospective taxation of Vodafone – which worsened investor sentiment. As a former RBI governor, Manmohan Singh also understands the RBI’s stand on inflation and interest rates better. So, at the very least, the PMO, the finance ministry and the RBI will at least have better understanding among themselves after Pranab leaves. This alone means that the economy will be better run than under Pranab. The PM knows his reputation is at stake – and this may be his last chance to remove the blot.read less read more

Arun George

It is easy to blame Pranab Mukherjee for the current problems of the Indian economy. If you are standing next to a body knife in hand, you will be suspect No 1 for the crime anyway. Pranab Mukherjee became Finance Minister just when the world economy was going bust in 2008 after the Lehman crisis. He managed to rescue the economy with a stimulus package – and the economy revived, to some extent. What he could not anticipate was the follow-on Euro crisis, which is now threatening the global economy again. The Indian Finance Ministry simply does not have enough at its disposal to implement another stimulus package. Hard measures like raising fuel prices need political support from the party and Sonia Gandhi. If Mamata and Sonia were agreeable to his plans, Pranab’s report card would have been much better. So, without Sonia Gandhi suddenly helping him it is unlikely that Manmohan Singh will do better.read less read more