People are expecting fall in prices of commodities because the new government has been given full majority and there is no pull and pressure from coalition partners like left front.
Just before election the same congress party leaders, economists and high profile journalists were of the view that India did not suffer much on account of global recession only because UPA could not go for full scale disinvestment under the pressure of left parties. It is also said that great economists like Manmohan Singh and Mr. Chidambaram could keep India decoupled with global recession. This achievement of UPA is said to be the cause of rise of seats of Congress Party in the Parliament. But it astonishes that the UPA government now talking of large scale reformation, speedy disinvestment and more and more power to private sector. And if UPA really succeed in what media is projecting and what congress leaders has been promising after becoming minister I have no doubt that prices of all commodities will go up and up.
As soon as this euphoria over Congress victory is over people realize the real pain of sky rocketing price rise in all commodities. Even cost of home, land or apartment will again rise. This government has started talking with businessmen how to make congress party strong, how to build party fund etc in the name of common men. All freedom will again be given to private sector, prices will continue to be unregulated and common men will continue to suffer more and more.
In the name of reformation, liberalization and globalization our government has been giving more and more power in the hands of private sector and in return enriching fund of not only party but that of self and their kith and kin too.
To add fuel to fire government has been selling the hard earned property (of PSU) through disinvestment. Mr. Manmohan Singh and Mr. Chidambaram have been considered as Pundit and Doctor of liberalization. They have simply sold the PSUs which were developed during Nehru and Indira's regime. They feel proud in selling the property (modern name is disinvestment) and distributing the same in the name of social welfare scheme.
During last two decades government has not built any college or institute, any manufacturing unit, any worth saying hospital or anything of public utility. Even highway project was started by NDA government and not the government headed by UPA.
In rainy days, it is said and seen that common man sells his household goods, ornaments, furniture etc to run his livelihood. Similarly our government feels respectful, elevated and dignified when it sells or disinvest some PSUs, partially or fully.
Our UPA government talks of freedom to banks and then asks PSU banks to finance at lower and lower rates and then advises for writing off the dues of farmers and traders either to create vote banks or for cleaning the balance sheet of banks so that PSU banks can compete with private sector and foreign banks. It is absolutely a cruel joke with banking industry. As a matter of fact political leaders neither think of health of bank and nor do they think of real welfare of farmers.
Inspite of all instructions from FM none of private sector banks have reduced lending rates till date though some of PSU banks have reduced lending rates even at the cost of health of the bank just to remain in good book of the FM. This is because private sector is worried of their profit and about the health of their bank and they hardly give much significance to whether they are in good book of FM and PM or not as their counterpart in PSU bank thinks. Flattery is meaningful of CMD of PSU banks and not that of private banks.
In aviation sector we have seen in the past that private airlines did not reduce airfare despite drastic fall in prices of ATF fuels. Government went of shedding crocodile tears during last six months for sharp rise in airfares but actual airfare did not come down.
Similarly real estate builders have been raising cost of land and apartment by leaps and bounds. During last five six years of UPA regime cost of house has been doubled or trebled by builders. Due to global recession prices were slightly and gradually coming down when left party pulled support from the previous government. But unfortunately again the same UPA has come to power and the same builders have started making contacts with ministers and stated making arrangements for pleasure of ministers and congress party leaders..
It is observed that prices of home has started going up slowly .In the name of low rate flats government has decided to extend support to private builders. Prices will invariably go up in real estate sector and the quality will deteriorate. Government will cry and shed crocodile tears but none of private developer will listen because they contribute to party’s fund only on this condition that they will decide the price and quality of flat and apartment.
Lastly I can say without doubt that prices of all commodities are sure to rise if the same degree of freedom is given to private sector and if the disinvestment process is accelerated and executed as contemplated and spent on so-called social welfare schemes.GDP growth rate is falsely and uselessly projected high by the government by either increasing salary or employees or by giving farms loans or by window dressing in similar way. Actual development and continuous monitoring of prices can only stop price rise and nothing else. Mixed economy is the real solution for common men and neither solely Private nor t solely Public sector can give stable comfort to general public.
Danendra Jain 3rd June 2009
CAclubindia
