Inflation is not coming under control. Prices of daily use items have gone up steeply and the hopes of their coming down are also remote. Moreso, the Union government, in a bid to check the increasing prices of edible oils had effected cuts in import duties, but to no effect. The cuts would have brought down the price by Rs 4 per kg, it was hoped. Similarly, there is no let-up in the prices of other items. Union Finance Minister, P Chidambaram also seems helpless before this scenario. At a programme in Singapore recently, the FM had said that no country was unaffected by the global slowdown and finally its effect is being felt in India too. Whereas, he said that America is responsible for this state of affairs. He further said that the US is using its grains to produce bio-fuel. This is resulting in jacking up of foodgrains prices, resulting in inflation. After tabling of a populist budget, the allies of the Govt would have to also bear responsibility for inflation on election front. The FM's Congress party too faces problems. The reason behind inflation is said to be imposition of taxes in the country. There is need to bring down tax rates to control inflation. It is natural that due to rapid development inflation is on the rise, but its sudden jump is beyond the understanding. To some extent the stock and black-marketing of commodities are also responsible for hike in prices of foodgrains. There is need to control this speculative business. Parliamentary and Assembly elections for many states are to be held this year.
Thus it becomes necessary to adopt measures to check inflation. The government should lessen taxes to control inflation. The government should understand that the Left parties are also making inflation an issue for polls. Prime Minister and Finance Minister should work out ways to tame inflation thereby bringing much-needed relief.
|
Print This Page
Terms
and Conditions