NEW DELHI: Finance Minister Nirmala Sitharaman Tuesday said on Rajya Sabha that despite the recent price increase, the government and RBI are trying to ensure that inflation is controlled below 6%, and stressed that India’s macroeconomic fundamentals are strong.
“The Indian economy, compared to the situation of many of our peer groups and developed economies, is much better. No one denies the price hike. We will look at the numbers as well as the ground level situation. Also according to the figures, we have an inflation range of 2 to 6%, we are at 7%, with a little effort. We have made sure that RBI and the government have taken enough action to ensure that it stays below 7%, ideally below 6%,” Sitharaman said, while responding to a debate about rising prices.
His response came after opposition MPs raised concerns about rising inflation hurting the common man and called on the government to come to the aid of the poor by cutting workers’ rights. customs. Members of the ruling BJP, however, blamed global factors for the inflation.
“You can have a narrative that you (the government) have collected so much tax and the poor get nothing. I’m going to list what we’ve done, and we’d like to do more. nothing is done for the poor and you are here for Ambani and Adani,” politicizes the debate. All of us, some of us in the states and in our respective constituencies are trying to ensure that the poor benefit from the programs. We are all contributing to the recovery process. I appeal to the House to speak on facts and on the basis of the dharatal (ground level) situation,” the FM said.
She also sought to set the record straight on recent GST changes, saying the decision to levy a tax on unbranded and packaged food products was based on a ruling by the GST Board, at which none of the States objected. She also said that states, including those led by opposition parties, were part of the decision-making process at all levels and that this decision was necessitated by “widespread misuse”.
The minister also said that several states including Maharashtra, Jharkhand and West Bengal levied taxes on products such as lassi, chaas and paneer before the GST came into force. This led to the TMC leaving Rajya Sabha.
Earlier, Raghav Chadha of the AAP said, “The cost of food production for farmers over the past year has increased by about 21%. But his income has not increased despite assurances of doubling farm income.
BJP’s Sudhanshu Trivedi said India’s current inflation (7%) is one of the lowest in the world. During the Indian rupee’s fall against the US dollar, he said it was because the US Federal Reserve was raising interest rates to contain inflation.
Rajani Ashokrao Patil of Congress said women were the hardest hit by the price hike. Even LPG cylinders distributed under Pradhan Mantri Ujjwala Yojana are not used.