Press Statement issued by BJP National Spokesperson
Sh. Prakash Javadekar

The Congress led UPA government has offered 'too little, too late' and has failed to take a holistic view of the price situation. The measures are adhoc and will not create the desired impact on the overall price situation. The BJP was consistent in its approach that the government needs to tackle and manage both the supply and demand side to tame inflation. But the government instead heavily depended on demand management rather than supply side management for the past one long year thereby resulting in a high level of inflation. Yesterday's half-hearted steps will not give much needed relief to the much touted 'Aam Aadmi' of the Congress led UPA alliance. The BJP will continue its struggle against rise of prices and inflation with renewed vigor.

The Congress blaming global factors as being responsible is clearly an act of desperation to cover up on its own economic mismanagement of the country. The recent and sudden spurt in prices in India is evidently much more and faster than any global price warm up.

Moreover, the nation can neither forget nor forgive that with every increase in global crude oil prices, the UPA government profits because of the Ad Valorum structure of duties. The income to the government from the petroleum sector, which was just Rs. 70,000 crores in 2004, rose to a phenomenal Rs. 1,70,000 crores in 2007-2008. The government has profited to the tune of Rs. 40,000/- crores by sheer increase in ad velorum collection, because of global price rise. This is sheer loot and the UPA has been an active party by perpetuating it. The BJP has always advocated duty restructuring to achieve revenue neutralisation. However, the government has not carried out this much needed course correction. In this context blaming global prices as being responsible for inflation and rise of prices is an inexcusable excuse.

Recent measures also do not indicate major change or course correction in the government’s direction and approach in correcting the situation. The government has clearly bungled badly in “Buffer Stock Management” of major food grains. Firstly, it allowed private players to purchase food grain from farmers, which in turn resulted in depletion of buffer stocks thereby threatening food security and also sending out panic signals in the markets. Secondly, the government has systematically and deliberately virtually destroyed the PDS which was the major protection shield especially for those who live below or close to the poverty line. Thirdly, the government reduced food grains quota to states on one pretext or another. Fourthly, it has compromised with the ration quality for the poor. Lastly, the government has not acted tough with hoarders and allowed them to profit at the cost of the poor. Buffer stock – Smooth PDS – enough quality for poor- action against hoarders is a clear line of approach to achieve effective price stabilisation. However, the government has failed to act on each and every aspect of food management. And to top it the government is failing in other core sectors such as cement and steel where cartalisation is spurring sudden rise in costs.

To expose the gross economic mismanagement by the Congress led UPA government especially on the issue of unabated price rise, the BJP will launch a nationwide agitation from 7th April 2008 by organising 'Anti-price rise rallies' in all state capitals.

(Shyam Jaju)
Office Incharge