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Govt’s wrong policies, inept economic management led to inflation: Congress
Addressing a press conference here on Tuesday, former finance minister P Chidambaram said the government’s pre-emptive action for the pandemic’s third wave should not just include ramping up oxygen supply or the number of Covid beds
The Congress on Tuesday accused the Narendra Modi government of wrong polices and inept economic management that resulted in soaring inflation amid the pandemic. The party demanded that the GST rates on certain items be slashed and pre-emptive measures be put in place to cushion people from any possible economic woes related to the Covid-19 pandemic’s third wave.
Addressing a press conference here on Tuesday, former finance minister P Chidambaram said, “This inflation has not been caused by a spurt in demand. On the contrary, private consumer demand is low. This inflation has not been caused by excess liquidity or too much money in the hands of the people. This inflation has been caused by the wrong policies of the government and its inept management of the economy.”
He said consumer price inflation has breached the upper limit of 6% while core inflation has moved up in a month from 5.5% to 5.8%. Reading out the inflation rates on pulses (10.01%), fruits (11.82%), oil and fats (34.78%), Chidambaram said, “Will the government please tell the people what they should eat, how they should light their homes and how they should go to work?”
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The former minister and the Congress’s chief spokesperson Randeep Surjewala both hit out at Prime Minister Narendra Modi and said the government’s pre-emptive action for the pandemic’s third wave should not just include ramping up oxygen supply or the number of Covid beds. “If the third wave comes, the economic situation will be worse. Jobs have been cut and income is reduced. In the third wave, further income cut, job losses will take place. The government must act to cushion people from the economic impact,” said Chidambaram.
The party also wants GST rates to be slashed but slammed the government and finance minister Nirmala Sitharaman for their scant regard for the GST council.
“The government continues with multiple rates of GST as well as high rates of 12% or 18% on an array of items, including toothpaste, toiletries, processed food, other food items, home appliances, etc. GST is an indirect tax and by definition it is a regressive tax,” read the statement from Chidambaram.
“The Congress party demands that the Central government should immediately reduce, substantially, the prices of petrol, diesel and LPG. We demand that import duties be reviewed and re-set so that prices of essential imported goods are cheaper. We also demand that GST rates be reduced on an array of goods that are mass-consumed by the people. We are convinced that these steps alone will bring relief to the people from the crushing burden of high inflation,” the former minister said.
