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CPI-M turns the heat on Govt over inflation

CPI-M accused the government of failing to curb rising prices, saying the Manmohan Singh government was to blame for the "dismal situation".
By HT Correspondent | IANS, New Delhi
UPDATED ON JUN 20, 2008 03:21 PM IST

The Communist Party of India-Marxist (CPI-M) on Friday accused the government of failing to curb rising prices, saying the Manmohan Singh government was to blame for the "dismal situation".

A day after renewing its threat to end its support to the government over the India-US nuclear deal, the CPI-M turned the heat over inflation, which has touched a 13-year high at 11.05 per cent.

According to the CPI-M, the inflation was a "direct result of the steep increase effected by the government in the prices of petrol, diesel and cooking gas".

The CPI-M, which along with three other Left parties extends crucial legislative support to the government, vowed to mobilise the people against the rising prices of food and other essential commodities.

The government this month increased the prices of petrol by Rs.5 a litre, of diesel by Rs 3 and cooking gas by Rs. 50 per cylinder.

Pointing out that the double-digit inflation would have "disastrous effect" on the living standards of the people, the CPI-M politburo said in a statement: "The Manmohan Singh government is squarely responsible for this dismal situation. It cannot escape by blaming global inflation."

The Communists alleged that the government had refused to take the measures proposed by the Left parties to check inflation. "Nor is it willing to do away with the iniquitous taxation structure and the import parity pricing of the petroleum products," the statement said.

The Left had wanted the government to strengthen the public distribution system and ban forward trading in all essential commodities. It has also demanded tax on the windfall profits of the private refineries." Even in the US, to whom our rulers look up to, the concept of taxing windfall profits is accepted," the CPI-M said.

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