New Delhi:
In a spirited defence of the government in the price-rise debate in Parliament, Finance Minister Pranab Mukherjee said that it was wrong to blame the government for inflation. Mr Mukherjee said the government was taking adequate measures to check inflation.
The Finance Minister also blamed the states for the rising prices, citing examples of state taxes and explaining the break-up between the centre and the states. He also said the minimum support prices of basic food grains had been raised consistently during the NDA regime.
Mr Mukherjee blamed rising oil prices on commodification, and prevailing international sentiments. " Can we take such a simplistic view or shouldn't we try and take corrective measures?" he asked.
"State governments generate more tax revenue on fuel prices than the centre," he said, adding that prices of oil have increased from well below $ 25 per barrel to $ 110 per barrel over the past ten years. "It is not possible to put under-recoveries of Rs 1,32,000 crore under any carpet," he added.
Mr Mukherjee said that slashing taxes is no solution to tackling price rise.
Earlier, the Opposition attacked the government on the issue of price rise. Leading the Opposition attack was BJP leader Sushma Swaraj, who accused the government of ignoring the common man.
(Watch)"You sometimes say that people's appetites, the growth in population have led to inflation. Pranabda which poor person is eating so much today?" Mrs Swaraj asked, adding, "People talking in numbers cannot understand the plight of this country or solve its problems. So please listen to me. You often talk about rising incomes but please also look at the poor. I have risen to talk about the theliwalas and rediwalas. Did their incomes increase? In fact, whatever they had has been wiped out due to inflation. Please consider them when you say that incomes are rising."
Mrs Swaraj stressed on then need to get black money back into the economy and said," ...the Rupee has fallen, grains are rotting, fuel prices are rising. RBI has to keep raising interest levels. You increase debt and taxes. Housing sector and infrastructure sectors are adversely impacted. Not only are new highways not being constructed, old ones are also falling to pieces. If you brought back black money stashed away abroad and curbed corruption, then inflation will be controlled."
Initiating the debate, Communist Party of India (CPI) leader Gurudas Dasgupta said the prices of essential commodities were spiralling because of the government's "failure to contain inflation".
"Rising price of essential commodities reflects abject failure of the government. Our expectations have not been fulfilled," Mr Dasgupta told the house, adding, "Price is incessant over years and the government inaction is also persisting." He took on the Planning Commission and ridiculed its statement that people were eating more and that caused food inflation.
The debate on price rise came on day when food inflation fell to a a 39-month low of 6.60 per cent during the week ended November 26 as prices of kitchen essentials like onions, potatoes and wheat declined, providing much-needed relief to the common man as well as the government. This is the lowest rate of food inflation, as measured by the Wholesale Price Index (WPI), since August 9, 2008, when it stood at 6.19 per cent. Food inflation stood at 8 per cent in the previous week ended November 19.