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Raise public spending to sustain recovery: CPM

Last Updated: Wednesday, December 23, 2009 - 20:00

Zeenews Bureau/ Stanly Johny

New Delhi: Communist Party of India (Marxist) on Wednesday hit out at the government’s economic growth claims, terming it a “stimulus based recovery”.

“It’s a stimulus based recovery. It is not going to be sustainable without stimulus,” CPI(M) politburo member Sitaram Yechury said here today.

Notably, Finance Minister Pranab Mukherjee today said the fiscal stimulus given to the industry to combat the adverse impact of the global financial meltdown will not be withdrawn before the budget to be presented by Finance Minister Pranab Mukherjee in February.

Commenting on the rising food prices, Yechury blamed speculation in commodities for the rising food prices.

“During the slowdown speculative capital has moved into commodities, which is driving up prices,” Yechury said.

“Unless we contain speculation, we cannot contain inflation. Without taking inflation we cannot sustain growth,” he warned.

Notably food inflation, according to recent data, shot up to
a decade`s high of 20 percent.

The sustainability of the recovery was dampened by the inflation, he added.

First Published: Wednesday, December 23, 2009 - 20:00
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