The Government has embarked upon course of action to decontrol the diesel prices to be determined by the market trends in time to come. Initially by partial deregulation it allowed the oil companies to raise the price by 45 to 50 paise per litre. It was expected that Government would hike the diesel price by Rs.4 per litres. With that criteria it is likely that 50 paise per month will go on for 8 months to reach the level of four rupees.
Diesel prices affect entire business system by way of passenger fares on bus and railways and increase the freight rate in good transport movement. This hike will multiply in hike of cost and prices of all the commodities and services.
Prime Minister Mr.Manmohan Singh from the day one he entered the political system as Finance Minister in the Congress Ministry of the Prime Minister Mr.PV Narasimha Rao he remained adhered to career beginning as Professor of Economics and later on economic assignments of Government of India as Civil Servant. After the fall of Chandrashekhar Government in Lok Sabha election Mr.Rajiv Gandhi was leading his party Congress with the poll promises to reduce the prices of all essential commodities with first 100 days time. But in midway of election he was assassinated at Sriperumbudur in Tamil Nadu.
Mr.Narasimha Rao took over as Prime Minister and inducted Mr.Manmohan Singh in Finance Portfolio. But he joined on the condition that he would not reduce the prices of essential commodities within 100 days. He as economist was of the opinion that Rajiv’s declaration was not sound and enforceable. Mr.Singh till that day to this day believe in the principles of market economy.
Had Mr.Rajiv not died and took over as Prime Minister he would have definitely fulfilled the poll promise by reducing the prices with the time limit of 100 days. He was a political person who knew how to carry out public welfare in the welfare state.
Mr.Manmohan Singh is not a politician. He continue to be an economist of civil service mentality. He knows the principles of economics but not the public pulse. By reducing the subsidies on the essentials he may be able to bring down the fiscal deficit in the Government budget but at the cost of deficit in every household budgets of crores of people.
The America and China are capturing global markets by giving subsidies on its industrial and agricultural produces. For American business it is cheaper to outsource softwares to India in manufacturing sector. But now President Obama has asked them to stop outsourcing and do it in the US itself at whatever cost and generate economy and job for the locals.
It is the minus point of all the experts and specialists that they are confined to a particular thing or angle and cannot have overall view.
The Prime Minister Mr.Singh is now in politics and he should think in terms of public welfare and life. Economic is one aspect of public and political life it is not the only consideration.
It is unfortunate that Mr.Rajiv Gandhi could not get a chance in the life to prove political vision in the 100 days promise.
Founder : Late Shri Ramgopal Maheshwari