Forgetting the political ideology for a moment, the UPA economic management is a classic case-study for economic students, of how NOT TO run an economy. Let us recap their egregious errors and record them here for posterity.
(a) Taking economic growth for granted.
(b) Running pro-cyclical fiscal policies and not using private sector led growth to strengthen public sector capabilities including fiscal capabilities – for a rainy day
(c) Fiscal dominance of monetary policy and hence, pro-cyclical demand boost coming from government demand and its monetisation – double whammy for inflation
(d) Hence, economic overheating => real appreciation of the currency, trade and current deficit, capital fright and flight and massive depreciation
(e) Allocation of public goods – spectrum, coal mine allocations – how NOT TO
(f) Policies that brought down potential growth – Land Acquisition Bill, Right to Food – and environmental clearances.