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Opposition asks govt to acknowledge problem of price rise to fix it, BJP puts blame on global changes

Opposition parties in Rajya Sabha on Tuesday appealed to the government to acknowledge the problem of rising inflation affecting the poor in India in order to fix it, but the ruling BJP asserted that it is a problem caused by global developments beyond the control of any country.

In a dramatic moment, Trinamool Congress (TMC) MP Kakoli Ghosh Dastidar bit into a raw brinjal to ask if the Narendra Modi government was encouraging people to consume raw food as cooking gas or LPG cylinders were no longer affordable.
Union Minister for Commerce & Industry Piyush Goyal speaks in the Rajya Sabha during ongoing Monsoon Session of Parliament, in New Delhi, on August 2, 2022

Congress member Manish Tewari said that the Centre’s policies have hit 25 crore households in the country hard and widened the divide between the rich and the poor.

Tewari alleged that the five pillars of the economy — savings, investment, production, consumption and employment — have been blown away due to the wrong policies of the Union government.

“During the UPA (United Progressive Alliance) regime, 27 crore people were brought above the poverty line. Then it was learnt from a report, which was made public in 2021, that as many as 23 crore people are once again below the poverty line,” he said, adding that 77% of the country’s wealth is in the hands of 1% of the population.

He said the wealth of the 92 most rich persons in India put together is equal to that of 55 crore Indians, and the number of billionaires in India had increased from 100 to 142 in these years.

The debate also witnessed Biju Janata Dal (BJD) leader Pinaki Misra raising the issue of high net worth individuals giving up Indian citizenship and asked Finance Minister Nirmala Sitharaman to look at the aspect of such people being harassed by Central agencies like the Enforcement Directorate, Central Bureau of Investigation, and Central Board of Direct Taxes.

Referring to the recent episodes of “mountains of cash” found with individuals, Misra argued that such recoveries only prove that cash is evading the tax system.

BJP leader Prakash Javadekar said price rise hurts everyone and the Narendra Modi-led central government is constantly working to check it. The inflation is at 7% now and has not yet reached the double-digit level like in the previous United Progressive Alliance (UPA) regime, he said. Javadekar further said due to coronavirus and the Russia-Ukraine crisis, the supply chain was hit, pushing up the fuel and food prices globally.

“This is beyond the control of any country. Not only India, prices have risen in other countries too,” he said.

However, the burden of high fuel prices on the common man could have been reduced had the non-BJP States cut the value-added tax (VAT), he said, adding that the Centre had reduced the taxes on petrol and diesel twice and it was followed by BJP-ruled states.

Refuting Javadekar’s claims, TMC leader Derek O’Brien said rising prices of essential commodities coupled with the imposition of GST on pre-packed food items, which was not agreed upon by the Opposition in the GST Council, and unemployment, is affecting the poor badly. On top of it, rupee appreciation has put pressure on the economy, he said.

“We appeal to the government as a constructive Opposition, first, you have to acknowledge the problem. If you do not acknowledge the problem, how will you fix the problem?” he said.

Brien further said the cess and surcharge have been increased to 20% from 10% 10 years ago. Two-thirds of it is collected by the Centre, thereby reducing the states’ share.

“About 29% of youth are jobless in India. Subsidy on cooking gas has come down, but not the retail prices,” he said and sought the finance minister to respond to these issues.

Echoing similar views, Congress leader Shaktisinh Gohil said, “People are fed up. In a democracy, the government should listen to the Opposition. But today it is not so.” Prices of vegetables to fuel have risen sharply and people are committing suicide due to unemployment, he added.