Thursday, August 1, 2013

Beyond UPA- II capability

It is beyond the capacity of UPA-II govt to check price rise and corruption if the experience of fours years is anything to go by. Petrol price has been hiked again by 70 paisa per litre. This is the fifth increase in rates in two months, and diesel by 50 paisa per litre on firming international oil prices.This is the fifth increase in rates since June and in all petrol prices have gone up by a massive Rs 6.82 per litre. Oil firms had on 1st June raised prices by 75 paisa, excluding VAT, and followed it with a Rs 2 per litre increase on 16th June, a Rs 1.82 increase on 29th June and Rs 1.55 hike on 15th July.This hike is the seventh since the 17th January. All losses on diesel sales should have been wiped off by now to make the fuel market priced. The continuing price rise and the fall in the value of rupees against the dollar since the Manmohan Singh-led UPA-II govt got back to power in 2009 now clearly reflect that it is beyond its capacity to check price rise and devaluation of rupee despite the fact that this govt is packed with world-renowned economists. It is said that when the more priests assemble at a temple, it is bound to be destroyed. The same thing is happening with UPA-II govt. Only two things- one is price rise and the other is corruption- have broken all its previous records. Just after assuming power for the second time in a row in 2009, Prime Manmohan Singh had promised to the people in his address to the nation that he would bring down prices of all essential commodities in 100 days. His govt. could not do so in four years and neither it checked price rise nor did stop corruption. This government has become blind to the prevailing ground reality of the nation and it is only concerned with economic reforms without realizing the fact that more economic reforms pave way for more market control as it is happening with the price of petroleum products. As price of petroleum product is decided by the world market, it is beyond the control of the government to regulate it to keep its prices down. The continuing price rise of petrol, kerosene, LPG and diesel has cascading effect on all essential commodities. One thing most surprising is that despite having been self sufficient in food grains, why is the food inflation is going higher and higher? The primary reason behind continuing price rise is the callous approach of the government towards managing economy and that also leads to continuing devaluation of rupee. An another impression has gone among the people that it is due to rising corruption that the prices of all essential commodities have been on the rise. The only gift to the people of the nation given by the UPA Govt-II is the spate of corruption. There is all round disillusionment among the people with the government because of its utter failure to check price rise and corruption. Now the time is not on its side and if UPA-II govt failed to improve its functioning in the remain time left with it, it is bound to lose power in LS elections next year.

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