Arun Jaitley
Assures House government is committed to control price rise
ling ‘’inflation’’ a legacy of the UPA, Mr Jaitley said, “Prices for some commodities rise because of lack of supply, it is not possible to fill the gaps (which Congress left) in five weeks. “What surprises me is that the party which brought the economy to this state wants to put the blame on someone else today,” he added.
“The fair hike which has happened is your (UPA’s) legacy. Whether we hike it or not, you will get to know tomorrow,” he said while addressing the Congress benches which led the Opposition charge in Rajya Sabha during a discussion on price rise on the first day of the Budget Session of Parliament. The Railways had recently implemented a 14.2 per cent hike in passenger fares along with a 6.5 per cent raise in freight charges. Referring to rise in prices of food items, Mr Jaitley said, “The government is committed to containing it (inflation) because we consider it a serious and sensitive matter. There is sufficient supply (of potato and onion) and therefore there is no reason for panic.”
Mr Jatiley said the UPA didn’t take tough decisions when it needed to. “My UPA friends must understand what situation they left the Railways in. The Railways has been left in tatters by the UPA government and the Congress now wants to pass on blame, he said. He said the 41-day-old Narendra Modi government had taken immediate steps to contain prices of food items unlike the previous dispensation during which cost of onion rose even up to `100 per kilo.
“For the last two years, prices of onion and potato have been rising. The then government used to wake up after prices had already risen... We started taking steps immediately when the prices touched `25 per kg,” he said. Triggering angry protests from the Congress, Mr Jaitley said it was the Congress government which had in February this year given a go-ahead to implement such the hike in railway fares from May. Although the decision to raise the rail fare and freight was taken with the approval of the then PM in February, it was withdrawn within hours of implementation on May 16.
As the UPA realised that it was being voted out of power, he said. “By the interim budget in February this year, the loss to the Railways on account of subsidised passenger fares was `30,000 crore... If you are using a service, you should pay for it,” said Mr Jaitley explaining that the railway minister Sadananda Gowda was faced with a “Hobson’s choice” as railways’ financial health was extremely bad.
“Does he (Railway Minister) follow the weak-kneed policies of his predecessor that unpopular decisions can’t be taken even if they are in national interest or does he then take this decision and place this fact before the country that to run the railways this decision was necessary,” he said.
Mr Jailtey said the government was being attacked even though it was yet to outline its financial roadmap in the Rail Budget to be presented on Tuesday and the General Budget on Thursday.
Responding to TMC member Derek O’Brien’s charge, Mr Jaitley also indirectly hit out at Trinamool chief and former Railway Minister Mamata Banerjee, saying, “I do not know whether those who handled railways in the past are the original sinners for the current situation.” On the Re 1 hike in diesel price, the Finance Minister said the government is implementing the previous UPA’s policy of gradual monthly increase.
Mr Jailtey said the Centre has already issued directive to the states to crack down on hoarding, put a cap on stockholding and hiked minimum export price for onion and potato. He added that the Food and Consumer Affairs Departmentwould continue to take steps to contain the rise in price of onion and potato and noted that the output of these two essential kitchen items have increased.
Food Minister Ram Vilas Paswan said strict action would be taken against hoarders and middlemen as they are responsible for price rise. “Hoarders are traitors of the nation,” he said.
Not satisfied with the reply, the Congress led a walk out of the opposition members that included those from included from BSP, Trinamool Congress and CPI(M). Only the NCP and DMK did not stage a walkout.
CPI(M)’s Sitaram Yechury said it seems the BJP government is playing the role of a ‘’UPA-III government’’ and demanded the finance minister disclose whether the government will put a ban on futures trading on various farm commodities . Mr Jailtey said “the government will keep the suggestion in mind.”