Congress worried over rising prices

The draft economic resolution, proposed by Rural Development Minister C P Joshi at the 83rd plenary session of the Congress also called for achieving double digit economic expansion while avoiding “jobless growth”.

The foremost concern of the people is the rise in prices, it said, adding “hence, it is necessary to address the issue with candour and courage”.
It further said that neither the centre nor the state governments should tolerate “inefficiency or corruption in the system that lead to artificial scarcity or goods or arbitrary increase in prices”.

The centre should impress upon the states to deal “sternly with hoarding, black-marketing and profiteering”, it said, adding the inflation, as pointed out by the government, would moderate to 6 per cent by March end.

Meanwhile, addressing the plenary session, Prime Minister Manmohan Singh said the government expected inflation to stabilise at around 5.5 per cent by March next year.
Inflation, which has become a politically sensitive issue, declined in November to 7.48 per cent from 8.58 per cent in the previous month, the resolution observed.

It was in double digit for several months till July.
Food inflation, however, rose to 9.46 per cent for the week ended December 4 from 8.69 per cent in the previous week.

While asking the government to avoid “jobless growth”, the resolution said, “growth will be meaningful to the overwhelming majority of people, especially the youth, only if it create jobs and throws up opportunities for self- employment.”
The government, it added, should “keep its focus on creation of jobs as an important pillar of economic policy".

"If the economy grows at 9 per cent and above, it will throw up abundant resources that will be adequate to fund our efforts to reach the goals (of inclusive growth)", it said.
Referring to 8.9 per cent growth achieved in the first half of the current fiscal, the resolution said, the government has “put in place measures that would make economy strong".

"In the long term we look forward to double digit growth and become one of the fastest growing economies in the world", it said.

The resolution also asked the government to expedite implementation of the Food Security law to provide subsidised foodgrain to people below poverty line.

Pointing out that about Rs 45 lakh crore will be required for development of infrastructure sector in the 12th Plan (2012-17), the resolution asked the government to “redouble its efforts to create infrastructure sector commensurate with a fast-growing economy.”