PM Misleads Again
"MONEY does not grow on trees", so said Manmohan on TV channels today. Is he to be told where from the money comes? It comes through tax payers money as also through selling the natural resources of the country (like spectrum and mines) judiciously.
I never expected him to speak about coalgate, but as expected, he spoke about hike in diesel price. I, a few months ago had written about it as also that how it can be done without it being inflationary. The PM justified it by saying that those using SUVs don't need this subsidy. It raises several questions. The government has increased diesel price by just Rs. five and is still giving subsidy of Rs. 13. Why? Why this cosmetic increase for those who can maintain costly cars? Second, these cars consume hardly 0.5% of the total diesel consumption. How much the increase affect them? Third, what about the poor farmers and other vehicles that use diesel to carry basic necessities?
PM did talk about the burden on economy due to subsidies but why he did say nothing about subsidies (incentives in his terms) to corporates? How can he explain decline in exports despite giving a subsidy of over five lakh rupees to these corporates? Why he did not explain the need to sell public sector shares to reduce fiscal deficit? Why he did not explain the contribution of sale of 2G (to be taken up shortly) in reducing fiscal deficit?
PM did follow the government line in advocating FDI in multi brand retail. (I have already wrote about it several months ago) What happened to his argument of coalition compulsions?
I never expected him to speak about coalgate, but as expected, he spoke about hike in diesel price. I, a few months ago had written about it as also that how it can be done without it being inflationary. The PM justified it by saying that those using SUVs don't need this subsidy. It raises several questions. The government has increased diesel price by just Rs. five and is still giving subsidy of Rs. 13. Why? Why this cosmetic increase for those who can maintain costly cars? Second, these cars consume hardly 0.5% of the total diesel consumption. How much the increase affect them? Third, what about the poor farmers and other vehicles that use diesel to carry basic necessities?
PM did talk about the burden on economy due to subsidies but why he did say nothing about subsidies (incentives in his terms) to corporates? How can he explain decline in exports despite giving a subsidy of over five lakh rupees to these corporates? Why he did not explain the need to sell public sector shares to reduce fiscal deficit? Why he did not explain the contribution of sale of 2G (to be taken up shortly) in reducing fiscal deficit?
PM did follow the government line in advocating FDI in multi brand retail. (I have already wrote about it several months ago) What happened to his argument of coalition compulsions?
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