Union finance minister Yashwant Sinha is always optimistic in any situation and has claimed that depreciation of the rupee against the dollar is temporary phenomenon and the currency would stabilise soon.

He has also ruled out immediate hike in interest rate and stated that though the situation is difficult there is no cause for worry as our economic fundamentals are strong and the country has enough foreign exchange to take care of seven months import.

Shri Sinha has presented three Budgets. During his tenure, the rupee has depreciated from Rs.37.16 to Rs.46 per dollar.

The interest payment liability per year has increased from Rs.68,800 crore to Rs.1,01,266 crore for the year 2000-2001, out of estimated revenue receipts of Rs.2,03,673 crore (about 50% receipts).

The imports are allowed freely so that there is a trade deficit of import-export of Rs.24,075 cr., Rs.34,495 cr., Rs.30,449 crore for the years 1997-98, 1999-2000.

The total debt and liabilities have increased from Rs.6,21,438 crore to about 11,00,000 crore.

With increase of diesel price from $ 29 to 32 and with depreciation of the rupee, external debt will increase.

I leave it to readers to judge the sound economic fundamentals in the light of above facts and figures.

VASANT J. DESAI
AHMEDABAD.

DATE : 06/09/2000.
TIMES OF INDIA.