The Bharatiya Janata Party on Tuesday dismissed Union Finance Minister's statement on high prices — which was laid on the table and could not be read because of the high decibel levels in the Lok Sabha — as full of lame excuses for the government's failure to check inflation.
The former NDA Finance Minister said the “new norm” for inflation is a high “six to seven per cent” as envisaged by Mr. Mukherjee in his statement. “He knows that because of very high inflation last year, he will get the benefit of a high base price by March next year,” Mr. Sinha said wryly.
“He has said during rapid growth inflation tended to increase. I would like to ask, what were the steps the government took to ensure that this did not happen?”
Then Mr. Mukherjee blamed the global conditions, “but 80 per cent of India's economy has nothing to do with global conditions.” Increased euro and dollar liquidity should not impact the Indian economy.
Mr. Sinha noted that in the last few weeks and months the rupee had depreciated against the dollar considerably. Increased euro and dollar liquidity should have resulted in the upward valuation of the rupee.
Warning that high prices of food could even lead to violence, Mr. Sinha said he would “not be surprised” if this were to happen.
Instead of acting effectively to control raging prices that were making holes in the pockets of people across all classes, the government had been trotting out excuses ranging from ‘people are eating more' to ‘global conditions.' Whether there was any result or not, a debate in Parliament on this raging issue was needed once again, Mr. Sinha said, in response to a question on the need for raising a subject that has been discussed over and over again in the House. “We will continue to press for such a discussion.”
Mr. Sinha said that after a discussion on prices, the BJP would give notice for an adjournment on black money.
