This post refers to the Hike in the Diesel Prices (by Rs 5) and Capping of the subsidized LPG cylinders to 6 per family per year and the followed criticism by BJP & TMC.
Let's first look into why this rise was necessary ? The diesel prices haven't been increased for more than a year and the international crude oil prices have been souring up, to add to that rupee has gone significantly weaker in comparison to the dollar making the imports much more costlier. And as a result of all this, the oil companies are facing huge losses which are covered by the Government in the form of subsidies.
However the amount allocated for subsidies this year has already been used up, the fiscal deficit is rising & the economy is in a very difficult situation. The subsidies almost amount to more than 2% percent of the GDP which is way too high. If no steps were to be taken, we'll be no where near the target fiscal deficit of 5.1% of the GDP. Even more the investment sentiments would keep dipping down and India would have been in a high risk of a "Downgrading" by the rating agencies which would have meant much more fatal to our economy.
All the economic experts view this as a very essential move especially in the current economic environment.
And i agree that this will mean more inflation and more monetary problems for the middle and lower classes of our country but this is the price to be paid to avoid a much bigger economic mess.
And now after the price rise, the BJP & the TMC (maybe others as well but i've seen specific comments from Mr. Venkaiah Naidu (BJP) & Ms. Mamata Banerjee (TMC)) opposing & condemning the rise and asking for a roll back.
And I believe this is just Pure & Simple Vote Bank Politics ! Don't they realize that this is very much needed for our economy and we will be in a much bigger mess in the future if no action is taken. And if at all they have any another solution for the problem, why don't they suggest that. But no, they'll just oppose the hike and gain points with the people.
BJP on the one hand criticizes the Government for not taking tough decisions and on the other hand criticizes those tough decisions once they come in. As a opposition party one doesn't necessarily have to oppose each and every move of the Government irrespective of whether it's right or wrong for the country.
We should realize that becoming leaders is more about working for the betterment of the Nation and not just trying to win points for next elections every time one gets a chance.
Let's first look into why this rise was necessary ? The diesel prices haven't been increased for more than a year and the international crude oil prices have been souring up, to add to that rupee has gone significantly weaker in comparison to the dollar making the imports much more costlier. And as a result of all this, the oil companies are facing huge losses which are covered by the Government in the form of subsidies.
However the amount allocated for subsidies this year has already been used up, the fiscal deficit is rising & the economy is in a very difficult situation. The subsidies almost amount to more than 2% percent of the GDP which is way too high. If no steps were to be taken, we'll be no where near the target fiscal deficit of 5.1% of the GDP. Even more the investment sentiments would keep dipping down and India would have been in a high risk of a "Downgrading" by the rating agencies which would have meant much more fatal to our economy.
All the economic experts view this as a very essential move especially in the current economic environment.
And i agree that this will mean more inflation and more monetary problems for the middle and lower classes of our country but this is the price to be paid to avoid a much bigger economic mess.
And now after the price rise, the BJP & the TMC (maybe others as well but i've seen specific comments from Mr. Venkaiah Naidu (BJP) & Ms. Mamata Banerjee (TMC)) opposing & condemning the rise and asking for a roll back.
And I believe this is just Pure & Simple Vote Bank Politics ! Don't they realize that this is very much needed for our economy and we will be in a much bigger mess in the future if no action is taken. And if at all they have any another solution for the problem, why don't they suggest that. But no, they'll just oppose the hike and gain points with the people.
BJP on the one hand criticizes the Government for not taking tough decisions and on the other hand criticizes those tough decisions once they come in. As a opposition party one doesn't necessarily have to oppose each and every move of the Government irrespective of whether it's right or wrong for the country.
We should realize that becoming leaders is more about working for the betterment of the Nation and not just trying to win points for next elections every time one gets a chance.
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