Government fails to curb inflation: Economic growth will be hampered

- Dhawal Mehta

Luxurious Hotel: The costly adventure of a 212-room five-star hotel at the railway station in Gandhinagar has shattered the illusion that this government is a government of the poor. Narendra Modi's main weakness is to create projects that will impress people. The Modi government has Chanakya's expertise in politics. But big statues, five-star hotels and dazzlingly expensive projects win elections only when prices remain stable.

Inflation: Continued inflation of 8 to 10 per cent hurts governments. The UPA-II government is drowning in a sea of ​​inflation. Retail market prices have crossed the Reserve Bank of India's range of 4 to 5 per cent. In June 2021, the retail price index was 4.8 per cent and in May it was 4.5 per cent. The current price hike is called costpush inflation because the rise in petrol, diesel and other raw materials has pushed up the prices of almost every commodity. This is also called supply side inflation. Demand-side inflation is when people have enough purchasing power and do not have enough goods to satisfy it. No one could have imagined that this government would impose unimaginably high taxes on petrol and diesel at its own expense and to raise eye-catching projects. Edible oil prices have also risen sharply. Cooking gas prices have caused outcry. Last year, retail prices rose above 5 per cent in July 2020 and August 2020, and in September 2020 and October 2020, prices rose above 5 per cent. Even in November 2020, inflation was hovering close to 7%. In 2021-2030, we must say that India's economic growth rate will be 7.5 per cent. But wait a minute. India's economic growth rate was negative at less than 7 per cent in the last financial year, so there is no need to speculate that the economic growth rate for 2021-202 is expected to be 7.5 per cent based on last year's low base. Suppose your income went from ten thousand to eight thousand and the next year it increased to 2000, but it is less than your previous income, isn't it?

Fiscal deficit: India's fiscal deficit has reached its limit. F.W. India's fiscal deficit, which was expected to rise to 3 per cent in 1991, has widened to 3.7 per cent and is expected to reach 7.5 per cent this year as well. Our dream of limiting it to three or three and a half per cent will not come true. Build eye-catching schools and hospitals in villages instead of hotels? How to manage 2 hours tap water in eye-catching villages? Turn temples into grand schools? Prices have risen in every sector. The highest has been in petrol and diesel prices. Excise duty on petrol has increased by 3% in 2021 as compared to 2012. It may be recalled that the sharp rise in petrol-diesel prices was not due to increase in its production cost but the government has imposed heavy taxes on it to generate revenue. In 2015, Tuvardal was sold at Rs 5 but now it is Rs 150. Adad dal is sold at Rs 15 instead of Rs 50. Edible oil prices rose by 3% in 2021. In economics, inflation of 3 to 4 per cent per annum is considered beneficial but not harmful. Inflation strengthens the supply side. But 8 to 10 per cent of India needs very cheap effective education and very cheap effective health services. You party have understood this. Build five star schools and hospitals in villages? Under the health services, every house should be flooded with tap water. Millions of people have been pushed back into poverty due to the recent rise in prices.