Expressing concern over increasing fiscal deficit in the country, BJP president Rajnath Singh today said after the implementation of Food Security Act the Current Account Deficit (CAD) may touch "alarming dimensions".
"The CAD may touch alarming dimensions after Food Security Act is implemented," Singh told reporters here.
The deficit in Current Account occurs when total imports of goods, services and transfers is greater than the total export. While fiscal deficit occurs when a government's total expenditures exceed the revenue that it generates.
Singh was here to pay homage to former Shiromani Akali Dal (SAD) president Sant Harchand Singh Longowal on his 38th death anniversary.
He said that though the BJP supports the Food Security Bill, the party wants certain amendments in the scheme.
"The wrong policies of Congress-led UPA government has pushed the country to such a situation that revival of fiscal investment will be an uphill task contending that the foreign and domestic investments have dipped," Singh said.
He said it is for the first time after independence that economic condition of the country is such that international rating agencies have rated it at so low.
The BJP leader said that continuous dip in value of the rupee was welcome as far as exports were concerned, but on contrary the import cost has increased in case of a large number of products affecting various sectors, including the manufacturing.
Singh termed the Congress-led UPA government a big failure on all fronts, including internal and external security.
Lauding the Atal Behari Vajpayee led NDA government, in which SAD was an alliance partner, Singh said the growth rate at that time was around 8.4 which has now dipped to 4.8.
Singh said that they were expecting good relations from newly elected government in Pakistan but now "it has been clarified that the Pakistan government neither have control on its army nor on ISI.