M A I N   N E W S

Pranab defends price rise, says inflation symbol of growth
Aditi Tandon
Tribune News Service

New Delhi, August 4
Had a common man heard Finance Minister Pranab Mukherjee’s treatise in the Lok Sabha today on the “ongoing inflationary pressures in the economy”, he would have wondered what the fuss is all about.

Not once in his hour-long defence of “inflation” during the UPA-II’s rule did the FM mention “price rise”, let alone grant relief from backbreaking food and fuel prices, which were blamed on inflationary pressures being felt since the start of 2008 when international oil prices skyrocketed, followed by the global economic meltdown which compounded the woes.

“Food inflationary pressures” were also conveniently explained in terms of 15 per cent shortfall in pulse and edible oil production despite JDU chief Sharad Yadav pointing out that pulse production had always been low but price rise situation had never been worse. The government said the states had been unable to effectively implement the PDS and the ESMA (Essential Services Maintenance Act) and to check inflation “collective wisdom” of Centre and states was needed.

For those (among them Leader of Opposition Sushma Swaraj, Sharad Yadav, SP’s Mulayam Singh and RJD’s Lalu Yadav) who didn’t understand what the FM’s technical reply would do to address price rise, Pranab had a simpler explanation. “Inflation is a symbol of growth,” said the FM when BJP MPs told him that NDA had controlled prices during its regime.

“What was the growth in your time, the investment rate, people’s purchasing power? If there was no growth, there was no growth,” an angry Pranab replied, with economist Prime Minister seated by his side. He also cited statistics on enhanced household incomes compiled by the National Council for Applied Economic Research, implying that inflation during UPA-II was there because the economy was growing, giving people more power to buy. Raised wheat and paddy MSPs, for example, gave farmers more money to spend, the FM said.

These references irked the Opposition no end and angry exchanges followed, with Sushma slamming the government for “not just being insensitive (a charge Pranab did his best to counter) but also confused over whether to contain inflation at all. “The PM is even more flustered. You say that inflation is a symbol of growth. That’s a fine economic argument but the fact is that while growth is meant for a few, price rise is killing the larger mass of poor people who came out during the Bharat Bandh in protest,” she said, demanding fuel price hike rollback as the LS adopted a resolution to “urge upon the government to take further action to contain inflation.”

Earlier, Pranab while citing job and education guarantees which the UPA had given through NREGA and RTE Acts, the FM invoked his personal example to counter Sushma’s “insensitivity charges: “I’m a village boy; have studied under a kerosene lamp; have walked 10 km daily to school. Don’t ridicule my sensitivity. You raised diesel prices from Rs 2 to 9. What wrong we did by raising them from Rs 9 to 12?” he said.