PM says govt had `a reasonably good term`

New Delhi, Oct 26 (PTI) Prime Minister Manmohan Singh has said his government has had "a reasonably good term" in office till now but rubbished the claim of Left parties that the Indian economy escaped the raging financial crisis due to their policies.

"We have had a reasonably good term and I would not
deny that over the last few months inflation had become a
problem. Also, recently because of the global factors, the
financial crisis is having some effect on our economy.
Therefore, we are obliged to take corrective measures," he
said.

"To say that I am not worried would not be correct. It
is my duty as Prime Minister to worry when things don't go as
planned," the economist-turned politician told reporters on
board his special aircraft while returning home from his
two-nation tour of Japan and China Saturday evening.

The Prime Minister was asked whether he was concerned
about the economic crisis, months ahead of the general
elections.

Asked to comment on the view of the Left parties that
India has largely escaped the effects of the global financial
turmoil due to their policies, the Prime Minister said: "I am
afraid I don't agree."

"Strengthening India's banking system, strengthening
India's insurance system has enabled us to deal with the
crisis more effectively," he said. "I beg to differ. But I am
not very happy to part company with our Left colleagues."

"In my view India is faced with difficult problems, all
parties which are committed to secularism and nationalism must
work together to deal with communal and regional divide which
is being sought to be created by some anti-social elements,"
Singh said.

"There are issues which require all political parties
which think alike to sit together and I very much hope we can
find ways and means to work with our Left colleagues," Singh
said.

Commenting on when the world would overcome the effects
of the global financial meltdown, he said: "Well it all
depends on how long it takes the world community to restore
confidence in the global financial markets.

"We are not in complete control. There are bigger
players and we are victims of that. The crisis is not of our
making. It is a crisis that originated in the US and Europe,
the type of integrated world economy we live in we are not
immune and I had mentioned in Parliament earlier this week on
Monday and I repeated that same sentiment in Beijing (while
attending the A.S.E.M. summit)," Singh said.

"I think reforms cannot take place in political and
economic vacuum. The situation has been such that oil prices
shot up in a manner that if I had passed on the whole burden
to the people at large, there would have been reckless
inflation," he said, adding that would have been "far more
counter-productive than our position to pass on only a limited
amount of increase to the final consumer."

"It is certainly true, if you look at the economy from
the traditional point of view, below the line fiscal deficit
has increased, but in a situation in which we are placed now,
it is a definite advantage. It is not a disadvantage."

"I think, we are in a typical Keynesian situation
where there is a lack of demand, private sector demand is very
weak, but strong government demand, both for social services
and for investments will provide the essential stabilisers
that our country needs in a time like this.

"We would have liked to do a lot more. But I think
politics is the art of possibilities," he said. PTI