Union finance minister Pranab Mukherjee on Saturday acknowledged he was concerned about the spiralling rise in prices of essential commodities, which has earned the Congress-led UPA government sharp criticism from the Opposition.
“I am concerned that the prices are increasing. Every week in the recent past — almost on a daily basis — I look into the 18 essential commodities’ retail prices in different sectors. That is the first task, being finance minister, I do. I am worried,” Mr Mukherjee said.
To combat the threat of price rise, he added, “I have suggested to the Reserve Bank of India, which is also watching the situation, to take appropriate measures as and when necessary through either changes in monetary or fiscal policy.” Mr Mukherjee’s remarks came while addressing the 179th annual general meeting of the Calcutta Chamber of Commerce.
Significantly, while Mr Mukherjee has admitted “concern”, CPI(M) general secretary Prakash Karat has reiterated his demand that the Supreme Court verdict on free distribution of foodgrains rotting in FCI warehouses be implemented. “The foodgrains should at least be distributed through the PDS in the drought-affected areas of Bihar and other states,” he said, adding that his party did not agree with the Centre’s assertion that the farmers will suffer due to free distribution of food grains.
“The farmers have already got their price as the foodgrains had been procured by Central agencies after making payments to farmers,” he said in Chandigarh on Saturday.
Mr Mukherjee has also urged support from the state governments for his tax reforms in indirect taxes. He called for political consensus among all political parties and for the introduction of the Goods and Services Tax (GST).
“We are making serious efforts to have another major tax reform in indirect taxes — GST. I mention here that I require support for that. A political consensus is needed to influence the various political parties and state governments in regard to the introduction of GST, which is a major change in the Constitution,” Mr Mukherjee said.
On his discussion with West Bengal finance minister Asim Dasgupta, who heads the empowered state finance ministers’ committee, he said, “I told him that I want to have reform, avoid multiplicity of taxes and taxation at multiple levels, and at the same time the rate must be moderate.” Mr Mukherjee said a group under the chairmanship of Mr Nandan Nilekani has been formed to build the right IT infrastructure to avoid tax evasion in the case of GST.