Press Esc to close
Thursday 21 August 2014
News updated at 9:30 PM IST
Weather
Max: 30.8°C
Min : 20.7°C
In Bangalore
Generally cloudy

Inessential imports will be curbed: Chidambaram

New Delhi, Sep 7, 2013, (IANS) :
Finance Minister P. Chidambaram. File Photo

Finance Minister P. Chidambaram Saturday said the government  will take some “hard decisions” in the next few days to curb imports of inessential goods and contain inflation.

"We have to contain demand and practice austerity measures. Wasteful expenditure should be cut. We have to ensure that import of all inessential items are curbed," he said, replying to a debate on the appropriation bill and price rise in the Rajya Sabha.
The finance minister cited the import of high-end television sets and said it cannot be imported under personal baggage any further.

"We are going through a stressful period. We have to take some hard decisions. Many of these measures are being taken and many measures will be announced in next few days and weeks. Some measures to curb import inessential items will also be announced.“


On hiking oil prices in view of  rising crude prices in the international market and rupee depreciation, Chidambaram said, "No one in the government will be happy increasing petroleum and diesel prices".

He said no decision had been taken and "no decision will be taken in haste".
Petroleum Minister M Veerappa Moily has said he would announce measures to curb fuel use this month.

The finance minister said he was concerned about the continuing high inflation.
"I am concerned about inflation. It is an unequal tax on all sections of people," he said.
Chidambaram said to address the inflation the government will now focus on supply side and distribution system of food articles.

Talking about the factors that contributed to inflation in the country, he said increase in

farm prices and wages was one of the key factors. "It will have impact on the inflation of the country. But it is a good policy to increase farm wages and prices in a country where almost 60 percent of the people depend on agriculture."

Regarding suggestions to cut taxes on petroleum products, Chidambaram said the matter could be considered provided state governments also agree to reduce the incidence of tax on oil goods.

"We can cut taxes. This 'we' is both the state government and the central government. In 2011-12 the central government collected Rs.95,349 crore as taxes on crude oil and petroleum products. All state governments put together collected Rs.105,384 crore. In 2012-13 the central government collected Rs.98,592 crore, all state governments put together collected Rs.119,314 crore."

"If taxes have to cut the central government must cut taxes along with the state governments. Let us cut some tax. But all of us should sit down together."

Replying to Communist Party of India's D. Raja's statement that the economic crisis and the depreciation of the rupee are the results of the policies pursued by the government, Chidambaram said the fall in the value of rupee to the sudden May 22 announcement of the US Federal Reserve regarding withdrawal of monetary stimulus.

He added the government will take more measures to increase flow of capital to contain volatility in forex market.

The appropriation bill was also passed by the Rajya Sabha. Earlier it was passed by the Lok Sabha. This Bill is intended to give authority to government to incur expenditure from and out of the consolidated fund of India.

Go to Top

Photo Gallery
Ashok Leyland's new truck “Boss” gets launched in Ahmedabad ...

Ashok Leyland's new truck “Boss” gets launched in Ahmedabad ...

Sonal Chauhan walks the ramp at the Lakme Fashion Week Winter/Festive 2014 ...

Sonal Chauhan walks the ramp at the Lakme Fashion Week Winter/Festive 2014 ...

National Ambulance Service vans during their launch in Allahabad ...

National Ambulance Service vans during their launch in Allahabad ...

Veteran actor Dharmendra at an event in New Delhi on Thursday...

Veteran actor Dharmendra at an event in New Delhi on Thursday...

Solar Panel Scam accused, Saritha Nair at the Court in Coimbatore on Thursday...

Solar Panel Scam accused, Saritha Nair at the Court in Coimbatore on Thursday...

A woman with her child at a relief camp after Naga miscreants killed Assamese villagers ...

A woman with her child at a relief camp after Naga miscreants killed Assamese villagers ...

Fire fighters try to control a fire that broke out at a plastic godown at Kaduvetti ...

Fire fighters try to control a fire that broke out at a plastic godown at Kaduvetti ...

Emran Hashmi with Humaima Malik during a promotional event of their new movie in Bengaluru ...

Emran Hashmi with Humaima Malik during a promotional event of their new movie in Bengaluru ...

Bollywood actor Nargis Fakhiri during a promotional event in Bengaluru ...

Bollywood actor Nargis Fakhiri during a promotional event in Bengaluru ...

Shriya Saran walks the ramp at the Lakme Fashion Week Winter/Festive 2014 in Mumbai ...

Shriya Saran walks the ramp at the Lakme Fashion Week Winter/Festive 2014 in Mumbai ...

Copyright 2014, The Printers (Mysore) Private Ltd., 75, M.G Road, Post Box 5331, Bangalore - 560001
Tel: +91 (80) 25880000 Fax No. +91 (80) 25880523