Mr. Prakash Javadekar made three demands to the Finance Minister, which can give relief to the ever growing prices in the markets. The Govt. must immediately change the ad valorem base of duties on petroleum products and adopt the policy of revenue nutrilisation in the wake of possible rise in international prices of crude oil due to volatile situation in west Asian countries. He also demanded that the excise duty on petroleum products should be reduced by 2%. Both, these steps together will tame the prices in the sector. He further demanded that essential food items like Rice, Wheat, Edible Oil, Pulses and Sugar should be made available at the reasonable price through PDS shops for APL population also.
He criticized the Budget as lack luster, uninspiring and a routine bureaucratic exercise. It offers no big idea and no big relief. The assumptions of 9% GDP growth, 6% inflation, 5% fiscal deficit, 3.4% expenditure increase and disinvestment targets may prove over ambitious and will result in a larger fiscal deficit and unabated inflation. He also charged FM of fudging of certain figure for convenience of projecting a rosy picture. The FM has compared BE figures of 2010-11 to show an increase in the provisions in the budget of 2011-12. He should have actually compare this year’s BE with last year’s RE. He provided examples of how the actual provisions of social sector, agriculture and subsidies have come down.
He also charged the FM with giving wrong impression about the real fiscal deficit. While the FM is claiming to have brought down the fiscal deficit at 5.1% but the actual deficit is 5.8% if calculated on the basis of estimated GDP of 69 lakh crores of rupees. The FM instead of calculating on this figure has taken shelter in the nominal GDP, which is 10 lakh crores more than the real GDP as it represents the inflation.
He also decried the regressive taxation imposed by the FM. FM has offered concessions to the direct tax payers and has imposed burden on the common man by increasing indirect taxation. FM suddenly changed the goal post and rules by imposing MAT on SEZs, which will shatter the confidence of the investors.
He accused the Govt. to be responsible for the current inflation and price rise. Despite the ample availability of the food grains, rising of prices is utter failure of Govt’s supply side management. Whenever Congress assumes office prices rise and whenever Non-Congress Govt. assumes office the prices slow down. It is the lack of political will and corruption are the real reasons behind the constant price rise.
