India News Online » News Analysis » Indian Politics » 

Government to tackle run-away inflation

	February 26, 2007

The main issue of concern to the aam admi (or common man), the spectre of rising prices, figured prominently in President A.P.J. Abdul Kalam’s address at the joint sitting of both Houses on the opening day of the Budget Session of Parliament on Friday, Feb. 23. Outlining the Government’s plans during the coming year, he said the UPA is determined to insulate the common man from rising prices.



He ascribed the situation in the recent months to a “steep increase in global oil prices”. Explaining the Government’s viewpoint, he said, “As growth and investment accelerate rapidly and incomes rise, there is bound to be a rising demand for all products of day-to-day consumption.”



The President pointed out that over the past two months, a number of fiscal and monetary steps had been taken to improve supplies of essential commodities.



However, the concerns over inflation were offset by a beaming prospect of economic resurgence with the increase in the rate of investment touching a record level of 34% of the GDP. This investment flow will create more jobs, he said.



Reckoning with the threat of terror footprints, the Government promised to modernise and streamline the police, security and intelligence agencies.



“While our security and intelligence agencies have successfully foiled many attempts by terrorists to strike terror, there have been tragic and cowardly acts of terrorism as in Mumbai, Assam and recently, the attack on Samjhauta Express.”



Kalam said the government “recognises the challenge posed by terrorism and extremism and has been resolute in dealing with it”.



He pointed out that the “dialogue process with Pakistan is progressing steadily” with the composite dialogue and anti-terror institutional mechanism having provided a structural framework for discussing all relevant issues.



However, India, he stressed, was concerned over infiltration and cross-border terrorism.



At the same time, Kalam had a word of caution about the excesses by the security forces in the troubled zones. The Government, he said, “attaches the highest importance to ensuring that all agencies respect basic human rights, even in the most trying circumstances”.





Monitoring Cell to keep watch on prices



Worried over inflation, the Congress has asked the Centre to take ‘tangible’ steps to contain prices. Following this, the Prime Minister wrote a letter to the States on Thursday, Feb. 22, stressing the need for implementing dehoarding measures to check the price rise. The Congress Working Committee had also expressed disquiet over the issue of rising prices.



At the same time, the Cabinet Committee on Economic Affairs, which took stock of the situation on Thursday, wanted fiscal, monetary and related measures to check price rise.



Dr. Singh said in his letter: “As you may appreciate, the increase in the prices of some [essential] commodities has also been fueled by speculation in the market. Considering the need for curbing speculation in some of the commodities, particularly pulses, the Forward Markets Commission has banned trading in urad and tur. There is, however, a need to strongly monitor the activities of anti-social persons who may indulge in speculation and profiteering.”



With the Centre deciding to set up a special monitoring cell to keep a daily watch on the price situation and provide support to the States, Dr. Singh asked the States to approach the cell for removing bottlenecks in the availability of essential commodities. States too should set up similar cells for regular intensive monitoring to detect any short-term fluctuations and take corrective action.



The BJP which is planning an adjournment motion on terror attacks, has also criticised the UPA Government for its failure to check prices. Party president Rajnath Singh said in New Delhi on Feb. 22 that the Manmohan Singh Government’s failure to curb the price rise has hit the common man hard. He has also written to Prime Minister Manmohan Singh seeking effective steps to check inflation.





Consensus on more Lok Sabha sittings



An all party meeting convened by Lok Sabha Speaker Somnath Chatterjee on Feb. 23, agreed that there must be at least 100 sittings of Parliament in a year. Currently, there are less than 80 sittings. Most political parties did not favour the Speaker’s proposal to throw open the proceedings of parliamentary committees to the media.



Meanwhile, Parliamentary Affairs Minister Priyaranjan Das Munshi said on Feb. 22 that the Budget session is to be reschedule keeping in mind the dates of the Assembly polls in Uttar Pradesh.