Staff Reporter

ERODE: Union and State governments have failed to control inflation and both are responsible for peoples’ sufferings, State Secretary of the Communist Party of India D. Pandian has said.

“Prices have been on the increase for quite sometime and without attending to the issue, Union and State governments are holding one another responsible, which is regrettable,” he told journalists at a press meet in Erode on Monday.

He said the first of the many reasons responsible for inflation was Union Governments economic policy.

“In last years’ economic report, the Government had said that inflation stood at zero per cent and it projected the same as a great achievement. Today, though, it is around 10 per cent,” he said and added that what it meant was that such figures had no relevance. “It also means that the prices of gold, computer will come down but not that of goods of everyday use of common man.”

Accusing the Government of paying lip service, he said, “It [the Government] says it is concerned but has failed to take any action to

control spiralling prices.” The second of the reasons for the price hike, Mr. Pandian said, was Union Governments decision to remove restriction on inflow of foreign capital.

“Today anybody can bring in any amount of money without having to inform any authority. And this has resulted in inflow of huge amount of money, which is being used for gambling in stock and commodity markets, resulting in price raise.”

The next reason was increase in administrative price and raise in fuel prices, which had had a cascading effect on other commodities. The CPI leader slammed the Tamil Nadu Government for “misusing” Union Government funds for purposes unintended.

“In the name of welfare measures the Government spent huge sums of money in unplanned manner on unproductive ways and the Comptroller and Auditor General has rightly pulled up the Government for the same.”

The State Governments liability stood at Rs. 90,000 crore, for which it paid a very high sum as interest, he pointed out and said Left parties would protest in front of the Parliament on March 12 to protest against the price raise. CPI district V.P. Gunasekaran, national executive member Stalin Gunasekaran and others were present.