On not passing benefit to people

Cover page sep 2016 Fri, 30 Sep 2016

On not passing benefit to people

Spokesperosn: Prof. Rajeev Gowda: He said that Clearly, the Finance Minister has again gone on record saying that by not passing on the benefits of crude oil prices has benefitted larger economy. By not passing on those benefits to the poor who are affected, whether through food prices or transport prices or any other effects of oil prices, he talked about investing in infrastructure and a variety of other measures but it would have been a better measure to boost the economy, had the benefit of lower oil prices been passed on the consumer and you would not have to look at the RBI Governor for a rate cut.

The last point that I want to mention is about something that is within this Government’s hand and I want to draw comparison to what happened when the UPA was in a similar position. Three years ago, the term of the then RBI Governor Dr. Subba Rao was coming to an end. Many months before that term ended, mindful of the extraordinary importance of the position of the RBI Governor, the confidence that both industry, the economy and even international investors needs to have in India’s monetary management, we in UPA had ensured that a successor is chosen and announced - Dr. Raghuram Rajan, more than three months ahead of time and at that time.

The Congress Party demands that the Government announce its candidate right away so that a smooth transition can happen at the highest levels of India’s economic decision making bodies. We also demand that the Government undertakes the measures that will curb food price inflation, assuage the concerns of the laboring classes, the rural poor and those who are suffering from the ill-effects of inflation across the economy including the middle classes. These are actions that Government must undertake. We have had enough of window dressing, we have had enough of slogans, it is high time the Government gets its economic act together right now. Tuesday, 9th August, 2016.