Opposition members in Rajya Sabha raise concerns over price rise

Opposition members in Rajya Sabha on Monday raised their concerns over price rise and asked the government to take measures to protect interests of the common people who have been hit hard by it.

DMK member T K S Elangovan said the government has completely ignored the interests of the poor such as daily wagers in the Union Budget for 2022-23.

"Budget has failed to provide relief to the common man and the poorest of the poor of this country," he said, adding prices of diesel and petrol have gone up which will have a cascading effect on all of them.

The budget's purpose should be to protect the citizens and to provide socio-economic protection, he added.

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"What this budget has done. They (government) have talked about rich people and getting money back from borrowers but what is the progressive idea for the people who are suffering," said Elangovan.

He also asked the government to fulfil its promise to implement the MS Swaminathan Committee report, which had suggested fixing the minimum support price (MSP) for all crops at 150 per cent of the input cost.

The upper house was having a discussion on the Appropriation Bill, 2022.

Amar Patnaik of the BJD said inequality in the society has increased and the government would have to rethink the economic policy for inclusive growth.

According to him, too much inequality would give rise to social strife. The total number of the middle class has gone down by 3.2 crore in 2020. In 1981 the share of the middle class in total income was 45 per cent and it has decreased to 22.9 per cent in 2020.

"We need to have a greater investment in education, health and nutrition and the purchasing power of the bottom of the pyramid has to be increased," he said, adding "for this, we have to increase the revenue."

Patnaik suggested for the reintroduction of wealth tax and Covid tax to generate resources for meeting social sector expenditure.

"The tax-GDP ratio is hovering around 10.7 per cent currently and in last five years, (it was) 11.5 per cent... We have to increase our tax-GDP ratio. Some way, some method has to be devised," he said.

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Citing an Oxfam India report, Patnaik said a 1 per cent wealth tax on 98 billionaires would finance the Ayushman Bharat scheme for more than seven years.

It can also take care of the total expenditure on school, education and literacy, he added.

"Two per cent tax on individuals with an income of over Rs 10 crore would increase the ministries' budget by an astounding 121 per cent. We need this revenue so that we can spend on the social sector," he added.

V Vijaisai Reddy of the YSRCP said a parity between taxation and inflation is needed because of falling income and rising inflation and stagnant tax relief.

"The common man cannot survive," he said, adding there is a decline in savings by taxpayers.

Provident Fund interest rates are falling and have come down to 8.1 per cent, which is the lowest in the last 41 years.

"This would impact 5 crore Indians," he said, adding no reforms have been effected by the NDA government to make the National Pension System lucrative for taxpayers.

He also suggested removing GST on health insurance to make it more affordable to the masses.

V Sivadasan of the CPI(M) said now the daily minimum wage in several states is even below the cost of two litres of petrol and that there is a huge decrease in wages.

"Workers also have dreams of better food, education, but unable to fulfil them with their wage," he said.

M Thambidurai of the AIDMK supported the budget and said it has a booster dose for the economy in the post-pandemic era. The government has chosen the path of heavily increasing the capital expenditure to create a cycle of high growth and employment generation.

However, he also asked the government to look at the income tax slabs and to be sympathetic as the price index is going up. "Humbly request you to look into the problems of the salaried class. You can give a further concession," he said.

Sukhendu Sekhar Ray of the Trinamool Congress said the prices have gone up and called it a return gift to the nation by the ruling party after its recent victory in state elections.

Petrol and diesel prices were increased six times in seven days, LPG cylinder became costlier by Rs 80, kerosene oil price was doubled, and edible oil prices went up by 25 to 40 per cent. Moreover, there is an 11 per cent hike in essential medicines.

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