Indian government passes massive nutritional handout bill, crushes currency

[mota bhai 2,675]

New Delhi/Mumbai: The rupee hit an all-time low, plunging to 66.24 to the dollar, and the BSE Sensex slumped 590 points on worries about the impact of the Rs 1.35-trillion food security bill that the Lok Sabha passed on Monday, renewing doubts over the government's resolve to control spending.

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BJP leader Yashwant Sinha and CPI leader Gurudas Dasgupta said the government had lost control over the economy but was blaming the US, instead. “The market is disturbed. The PM and FM are well aware what the consequences of their policies will be. Yet, they are continuing with them,” Sinha said.

"A non-performing government has generated a dangerous crisis, an economic disaster,” Dasgupta said, holding up the Food Security law itself as the government’s admission of its failure.

http://www.asianage.com/india/food-bill-crushes-rupee-395