Date:16/05/2007 URL: http://www.thehindu.com/2007/05/16/stories/2007051607221400.htm

National

Government comes under attack on issue of prices

Special Correspondent

``UPA focus has shifted from ``Aam Aadmi'' to ``Khas Aadmi''

Government has taken few steps to check prices and inflation: CPI

2007 Budget will be remembered for concessions for pets: BJP

NEW DELHI : Rising prices of essential commodities and its affect on the ``Aam Aadmi'' became the dominant theme in the Lok Sabha as the Government came under attack for its ineffectiveness in controlling inflation.

Initiating the discussion, Prabodh Panda (CPI) said though the Government and Congress leaders acknowledged that prices was a factor in its electoral defeat in Punjab, Uttarakhand and Delhi's municipal elections, the Government took few steps to check prices and inflation.

Criticising the Government for failing to augment supplies, he said it resorted to tightening money supply. ``The Finance Minister always talks of Wholesale Price Index and nothing about the Consumer Price Index... the public distribution system has been weakened and I don't know how many de-hoarding operations have been conducted. No results of the steps are visible'' Mr. Panda said.

Anant Kumar (BJP) said that the United Progressive Alliance Government could not contain inflation, something the previous Vajpayee Government had managed to do. Though the Government had eminent economists in Prime Minister Manmohan Singh, Finance Minister P. Chidambaram, and Montek Singh Ahluwalia, heading the plan panel, the country's economy was in the ``doldrums,'' a point countered by the Finance Minister.

In his brief intervention, Mr. Chidambaram said the member should at least show one analyst of repute who had so concluded and cited figures of slightly over 5 per cent growth rate during Mr. Vajpayee's regime, against over 8 per cent that the UPA achieved.

The BJP member said the Congress-led UPA came to power promising to work for the ``Aam Aadmi'' (common man), but it had turned to ``Khas Aadmi'' (important man).

The 2007 Budget, he said, would be best remembered for the concessions provided for pets.

S.K. Kharventhan (Congress) stood up to defend the policies being pursued by the UPA Government and detailed the steps taken to augment the supply side that led to fall in prices of essential commodities, including pulses, edible oil, sugar, wheat and rice. He said the decision of the Government to roll back prices of petrol and diesel also had a major impact on prices.

The Congress member praised Tamil Nadu Chief Minister M. Karunanidhi's policy of giving rice at Rs. 2 a kg and making vegetables available at affordable prices through direct selling. Such schemes should be replicated elsewhere to help the poor, he said.

The discussion remained inconclusive.