Replying to a short duration discussion on the “rising prices of essential items” in Rajya Sabha on August 2, Union Finance Minister Nirmala Sitharaman said the Centre was not denying the fact that there was price rise. She said the Centre was taking constant efforts to check prices of essential items such as tomato, onion, potato, pulses and edible oil. She denied the charges by the Opposition that the Centre was denying share of cess and duties on petroleum products. She added that the country’s macro economic fundamentals were strong.
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Replying to the debate which went for about four hours, Ms. Sitharaman said the Indian economy was much better compared to its peer groups and developed economies. However, she said nobody was in a denial about the price rise. “We will look at the numbers [on economy] and also at the ground situation. We are not running away,” she said added that even looking at the numbers, the Centre was making efforts to keep the inflation level at 7%. “Ideally it should be below 6%,” she added.
She said presenting the numbers did not mean that there was no inflation in the country. “It becomes very haranguing if the debate is for attributing things which we haven’t said. We are looking at both on data and on the ground situation. We are in constant interaction with the people. We are having a targeted approach and through this we are approaching sections of people who need help,” she said.
The Finance Minister said the Opposition was trying to build a narrative that the poor person was not being given anything from the cess and duties collected by the Centre. She said the Opposition was absolutely politicising the debate by saying that the Centre was for Ambanis and Adanis. “All of us together are working to make sure that the poor people’s voice is heard. Each one of us is contributing in the recovery process, not just for the economy but also to handle the pandemic,” she added.
She claimed that the Centre had contained the prices of tomato, onion and potato. The prices of edible oil was also under control and the Centre was periodically reviewing the availability and prices of pulses and also its cultivation area.
Countering Opposition’s charges that cess and additional taxes on petrol and diesel were not shared with the States, she said the Centre collected ₹ 3.77 lakh crore cess and ₹ 3.93 lakh crore had been utilised through States. “It goes to the States promptly. Centre does on sit on it. Cess collected, cess utilised. It is a misconception that cess is not shared,” she said and added that total flow of funds to the States had increased close to 15%. “14.8% average resource growth in States after the GST,” the Minister said.
Earlier, initiating the debate, CPI(M) leader Elamaram Kareem said there was no unanimous decision on the GST council on the tax on pre-packed items as Kerala and some other Opposition-ruled States had opposed it. BJP’s Prakash Javadekar said all countries in the world suffer from inflation. “But no country has given free ration as we did,” he said.
Congress MP Shaktisinh Gohil said people were fed up with the price rise. He said the Centre collected ₹ 27 lakh crore through additional cess and duties on petrol and diesel and ₹98,000 crore was used to pay for oil bonds. He said Prime Minister Narendra Modi as the Chief Minister of Gujarat had taken a decision that the State would not reduce VAT on petrol and diesel. DMK MP Tiruchi Siva said consumption of rural households had fallen and profits of corporate houses had increased. Speakers of parties such as the JD(U), YSRCP and BJD also criticised the Centre’s efforts to curb price rise.
