M A I N   N E W S

PM bats for sweeping steps to curb corruption
Advises states to do away with local taxes to tame prices
Anita Katyal
Our Political Correspondent

New Delhi, February 4
Inflation and corruption - the twin issues on which the UPA Government is facing public ire - figured prominently in Prime Minister Manmohan Singh’s address at the second annual conference of chief secretaries here today.

Stating that corruption strikes at the roots of good governance, the Prime Minister said the “menace” dents the country’s image internationally and demeans it before its own people. It also impedes faster growth and dilutes efforts at social inclusion, he added.

“This is a challenge which has to be faced frontally, boldly and quickly,” he told the gathering of the country’s top bureaucrats even as the government is struggling to salvage its reputation following a series of allegations of corruption on the 2G Spectrum allocation, the Commonwealth Games controversy and the Adarsh Housing Society scam.

He said the government has set up a Group of Ministers to look into all measures to tackle corruption while two bills on judicial accountability and the protection of whistle blowers have been introduced in Parliament.

In addition to legislation, the Prime Minister underlined the need for putting in place a systematic response that reduces opportunities for corruption.

“The introduction of competition, greater choice and modern technology can cut down the opportunities for corruption,” he added.

If the burning issue of corruption has dented the UPA Government’s image, the ruling dispensation is also under attack over its inability to curb inflation which has touched 8.43 per cent because of rising food prices.

Acknowledging that inflation needs to be “tackled with great urgency”, the Prime Minister attributed it to supply-side shortages, especially of agricultural commodities and imported items like petroleum products. The spurt in food costs, he explained, was driven by an increase in the prices of vegetables, fruits, milk, eggs, meat and fish as these cannot be held in public stocks.

Pointing to the crucial role of state governments in curbing inflation, the PM asked them to consider waiving mandi, octroi and local taxes for taming inflation which affects poor “harder” and poses serious threat to the country’s growth momentum.

“There seems to be a strong case for waiving mandi taxes, octroi and local taxes, which impede the smooth movement of essential commodities,” he said, while pressing for a review of the functioning of the Agricultural Produce Market Committee Acts (APMCAs) on “an urgent basis”.

According to him, food inflation could be contained by increasing agricultural productivity and production not only of cereals but also of pulses, vegetables, oilseeds and fruits.