The first day of the monsoon session of Parliament was consumed in solving the dispute as to under which rule the issue of price rise would be debated. Anyway, on the very next day when the discussion started the Opposition kept on arguing that increase in prices was largely due to the faulty policies of the government in power. In reply, the ruling Congress said that the government was making all efforts and steps were being taken to check price increase. It also said that it didn’t have a magic wand which can make the growing inflation disappear in a jiffy.

Interestingly, the discussion concluded with both the centre and opposition passing a resolution that surging prices are a matter of grave concern and that the government should initiate immediate steps to control inflation. Unfortunately, the Centre failed to make it clear to the countrymen through this hot debate as to what were the reasons for price rise and what steps were being taken by the govt to check price rise.

However, what’s evident regarding the so called earnest steps is increase in interest rate under the aegis RBI so that flow of money could be restricted to control soaring prices of commodities. The question arises, whether a common man takes loan from the banks to meet out his daily needs of food and ration? Secondly, whether restricting the liquidity could be effective in controlling prices. Increase in interest rate has badly impacted investment in construction industry. The common man with a simple dream of having his own home now looks a distant proposition. Though construction works are in full swing in metropolis however, one thing which is to be noted is that the investments in real estate in metropolis are being made by Indians who have stashed millions of black money abroad.

For a lay man, surge in prices is largely due to two factors which could be effectively removed to rein in food inflation. A majority of the population believes that surging prices of food grain is due to futures market. However, this fact wasn’t elaborated during the debate in the parliament. Secondly, the other factor which has pushed prices to towering highs is the surge in prices of petro products, which in turn is attributed to the sharp increase in crude oil prices during the recent times. However, the truth is something different. Increase in prices of petro products is more due to heavy taxes imposed by the centre and the states in order to fill up their coffers. In order to keep a tab on petro prices, Govt could have removed some of the tax burden on petroleum products. Moreover, it could have also created new avenues of revenue generation by taxing the elite and saving ordinary people from the brunt of inflation.

Govt should eschew policies which lead to corruption and accumulation of wealth by the so called rich and elite segment of the population. For instance, if the Govt fixes prices of LPG in two different ways then this would certainly augment corrupt practices. The millionaires would always try to prove themselves as poverty stricken to lap up LPG cylinders at an economic price of below Rs 200! Similarly, if prices of diesel are fixed in two ways then it is more likely that people with diesel driven luxury cars would buy diesel in 50 liter drums instead of getting their fuel tanks filled! The truth is nobody wants to cough up extra money, whether rich or poor. The need of the hour is imposition of heavy taxes on luxury goods and automobiles which are thought of as signature statement for the riches. Heavy taxes should be imposed on luxury cars, high cost luxury marriage pandaals and five star hotels and hospitality services. Taxes should be more on high rise magnificent apartments and luxury bungalows. In essence more taxes should be imposed on services and luxuries being consumed by riches. This would certainly take the burden off from the poor.

Ironically, in our parliament all these things are never being debated upon. Opposition seldom passes resolution regarding particular steps that should be taken up by the ruling regime in checking price rise. After much hue and cry and unnecessary debates, only a formality in the form of vague resolution is passed and opposition washes its hands off. The second term of UPA Govt since its inception has seen sharp escalation in food prices. All the steps taken up till now have rather proved futile. Yet the parliament has failed to come out with effective guidelines for the govt though every session begins with discussion on surging prices. As the events in parliament unfold before us, the question is whether the parliamentarians are only interested in pulling the leg of ruling regime through debates, discussion and allegations. Whether the parliament has become a platform to vent out their personal interests and vendetta? If this is the only reason then it would be wrong to pride ourselves in having a supreme parliament and the world’s largest democracy.

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