Inflation to rise further: BJP

'Budget deficit has already reached 80% of the estimate for 2004-05'

The Bharatiya Janata Party (BJP) today said the state of economy, as revealed by the mid-year review of the finance ministry, had "confirmed" its apprehensions that the Budget was "inflationary" and would put a spoke in the wheels of development even as it demanded a full-fledged discussion on it in Parliament.

The mid-year review was tabled in the Lok Sabha yesterday by Finance Minister P Chidambaram.

The signals that the review contained did not augur well for the financial health of the nation and confirmed the BJP's misgivings about the Budget, said VK Malhotra, BJP parliamentary party spokesman.

"All our apprehensions, which we raised at the time of Budget presentation have come true. The Budget deficit has already reached 80 per cent of the estimate for 2004-05. If it goes at this speed, it will lead to more inflation in the coming days," he said.

"The remarks made on subsidies on liquefied petroleum gas (LPG) and kerosene that targeted subsidies will be offered and that the poor who use wood will not be affected by a subsidy cut is just a way of sugar-coating these anti-people decisions," he said.

He also termed as "anti-farmer" the reported proposal not to raise the minimum support price for wheat and rice. "It is a decision made to pauperise farmers," said Malhotra.

The sharpest criticism of the mid-year review was, however, reserved for the opening up of the retail sector for the foreign direct investment (FDI). The entry of multinational retailers would squeeze out smaller Indian players from the market.

The party had also included its opposition to the move to allow "retail chain of MNCs" in the country in its economic resolution passed at the Ranchi national executive meeting.

The party also said the growth rate had declined. "During the National Democratic Alliance (NDA) regime, the growth rate had touched 8.4 per cent. Under the United Progressive Alliance (UPA) government, it has sunk to 6 per cent," said Malhotra.

Pooh-poohing the the finance minister's claim that "even at a relatively lower growth of 6 per cent plus for the current year, India will continue to be one of the fastest growing economies," he said, "they used to make fun of us when we talked about it with a growth rate of about 8 per cent".

"The mid-year review has confirmed all our worst fears as far as the Budget is concerned, tough days are ahead," Malhotra said.

"We have given a notice for special discussion on the mid-year review under rule 193," the BJP leader added.

Meanwhile, criticising the government, Malhotra said when the winter session started, the list of legislative business was an arm length.

"But after being well within the second week of the session, the only Bills to have been presented were the POTA and Special Tribunals repeal Act and Unlawful Activities (Prevention) Amendment Act as well as the setting up of Board of minority education Act," he said.

According Malhotra, the business for next week too is just as as scarce. "The only legislative business listed by the business advisory council till Tuesday is a discussion on the 10th Five-Year Plan and revival of the legislative council in Andhra Pradesh," he said.

"When the government said it had 46 Bills to present in this session, we expected at least some work to be done this time," he said.

The BJP would protest against the non-presentation of the patents Bill, since the TRIPs agreement would enforce product patenting from January 1, he said.

"We still do not know the shape of the proposed Bill. While Arun Jaitley articulated our position, we do not know if our suggestions have been kept in mind," he said.

"We feel hurt that there is no sign of important social legislations like the national employment guarantee Bill in this session although it was promised that it will be presented in this session," he said.

The party took up the matter in the BAC but to no avail. The matter was also raised in the Lok Sabha last week.

However, at that time Parliamentary Affairs Minister Ghulam Nabi Azad had replied that after wasting two sessions, the BJP should not talk of having no work.