Union finance minister Pranab Mukherjee on Sunday said he was open to discussions with the leaders of UPA partners who were unhappy with the hike in the prices of petrol and diesel.
“I am open to discussions with the coalition partners. I am not saying there will be a roll back, but I am only saying that I am open to discussions,” Mr Mukherjee said.
The finance minister was responding to roll-back demands from UPA constituents such as the Trinamool Congress and DMK, even though the two regional outfits, after demanding the withdrawal of the hikes effected in petrol and diesel prices, climbed down a bit on Sunday, maintaining that they were only keen on seeking a status quo in the price of diesel, which was used more by the farmers.
On his part, the finance minister said the issue will not become a source of confrontation between the government and its allies. “In a multi-party democracy, we’ve to work with our alliance partners,” Mr Mukherjee said when asked about the criticism voiced by Trinamool and DMK about certain budgetary proposals.
The Union finance minister, while justifying the move to enhance the duties on petrol and diesel, has argued that they had become inevitable to bring the fiscal discipline within manageable limits. “I have to mop up resources. So far as their inflationary impact is concerned, I have calculated that there will be an increase of 0.41% in the WPI,” he said, adding that its impact will be absorbed by the economy in due course.
Even as Mr Mukherjee stood firm on the budgetary proposals, his stand got a boost on Sunday with NCP, another alliance partner of Congress, coming round to backing him. “The finance minister has taken into consideration the ground reality,” said NCP general secretary Tariq Anwar.
The Trinamool Congress, which faces an electoral battle in West Bengal in a little over a year from now, is wary of the impact of fuel price hike on its political prospects in the state. It’s particularly cut up with decision to go in for a diesel price hike, and has demanded its immediate roll back.
Similar calculations have triggered the DMK reaction. It had a day earlier demanded an immediate roll-back of fuel price hike, saying it would have a “cascading effect” on food prices at a time when the Centre and the states were grappling with high food inflation.
In identical letters to Prime Minister Manmohan Singh and UPA chairperson Sonia Gandhi, besides the Union finance minister, Tamil Nadu chief minister M Karunanidhi had on Saturday sought their immediate intervention for a roll back, at least on the price of diesel to “protect the farmers and the common man”.
He said he wanted to draw their attention to the ‘far-reaching implications’ of the hike. “You are fully aware that the Centre and the states are grappling with the issue of high food inflation in recent months,” the chief minister said, adding: “Any increase in the price of diesel will have a cascading effect on food prices as well as prices of other essential commodities. Therefore, I seek your immediate intervention for a rollback, at least on the price of diesel so as to protect the farmers and the common man.”
Source: http://economictimes.indiatimes.com/news/economy/policy/FM-ready-to-talk-fuel-price/articleshow/5629611.cms
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