Curbing inflation is solemn commitment: Kalam

The government today made a solemn commitment to provide food security and insulating the poor from rising prices in the wake of inflation soaring above 6.5%.

"My government is committed to providing food security to the poor and is taking further steps to strengthen the public distribution system", President A P J Abdul Kalam told the joint sitting of the Parliament on the opening day of the Budget session.

Listing the steps taken to control inflation, Kalam said in the wake of low wheat production, wheat stocks have been replenished in order to control the rise in prices. At the same time, he said the minimum support prices for wheat and coarse cereals have been suitably enhanced as an incentive for higher production.

On inflation, Kalam said during the first half of 2006, the UPA government took a number of steps to insulate people from the fallout of the steep increase in global oil prices and a resurgence in global commodity prices.  However, in recent months, the rate of inflation has shown an upward trend, Kalam observed, adding that as growth and investment accelerate rapidly and incomes rise, "there is bound to be a rising demand for all products, particularly products of day-to-day consumption."

The government will continue fiscal prudence to ensure sustainability of growth, equity and keep inflation under check. "Fiscal responsibility is not an academic obsession," the President said, and added that it was necessary to address the government's commitment of growth which should not be "just faster, but also more inclusive and equitable."

The robust growth witnessed during the last few years augurs well for the launch of the 11th Five Year Plan, which aims at putting the economy on a "sustainable, accelerated, growth trajectory", while creating productive employment opportunities in all sectors, he said.

The 11th Plan would address the issue of inclusive growth by focussing on nine major challenges that include regaining agriculture dynamism,  changing employment patterns and generating new jobs, providing essential public services to the poor, increasing manufacturing competitiveness, develop human resources, build world-class infrastructure, protect environment, and improve rehabilitation, resettlement and governance.