New Delhi: CPI(M) on Wednesday said Prime Minister
Manmohan Singh's justification of hike in petrol prices
reflects a "flawed economic thinking and insensitivity to the
sufferings" of the people due to price rise.
In a statement, the party said Singh's assertion that the
impact of the fuel price hike will lead to only 0.4 percent
rise in the wholesale price index is a "gross miscalculation"
since it does not take into account the impact of high fuel
prices on food prices.
"Food price inflation soared after the last hike in petro
prices in July 2009. At a time when the people are reeling
under nearly 20 per cent food price inflation, this round of
fuel price hike will amount to a completely back-breaking
burden," the party said.
It said Singh's justification of the hike in indirect
taxes on diesel and petrol in the budget in terms of taking a
long-term view "reflects a flawed economic thinking and
insensitivity to the sufferings of people due to price rise".
Estimates suggest the Government seeks to mobilise Rs
25000-30000 crore in the forthcoming year through increase in
customs duties and excise duties on diesel and petrol.
On the other hand, the statement said, the budget noted
that Rs 26,000 crore worth of revenue will be lost during the
same period due to the cut in income taxes.
"How come the Prime Minister is defending the indirect
tax hike in the name of fiscal consolidation while turning a
blind eye towards the direct tax cuts?" it asked.
PTI
First Published: Wednesday, March 03, 2010, 15:58