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INDIA TODAY
    CURRENT ISSUE DECEMBER 06, 2004
 
   NATION: UPA GOVERNMENT
 
Death of a Slogan

The UPA Government's people-friendly image suffers a setback as some of its allies take strident postures on spiralling prices, higher inflation and new taxes with coming assembly polls in mind
 

Six months after the Congress took the shine out of the NDA's suicidal India Shining campaign with the earthy "Aam aadmi ka kya hua?", the slogan has come back to haunt the UPA Government. Characterised as "anti-poor, anti-people and anti-rural" by one of its own constituents, the UPA's people-friendly image has been jeopardised as its allies go to town on spiralling prices, increased inflation and new taxes.

"The Government sponsors policies that favour the rich and discriminate against the poor," thunders Rural Development Minister Raghuvansh Prasad Singh. He directs much of his ire at Finance Minister P. Chidambaram for having "no clue on how to draft pro-poor policies". The Rashtriya Janata Dal (RJD) stalwart's remarks have gladdened the hearts of consumer groups-especially those working in the rural sector-and has found echoes among other UPA supporters. The Left Front, which sees itself as the conscience-keeper of the UPA Government, repeatedly warns that "having been elected on the aam aadmi platform, it needs to address issues like the petro-products price hike, pf interest rate cut and increased inflation and credit policy from the common man's perspective". To mollify the inhouse critics, the Government has decided not to further hike the price of LPG.

  PICTURE SPEAK
UNDER ATTACK: The Manmohan Singh Government is accused of being anti-rural FIRED UP: The hike in petro prices has ignited nationwide protests

However, the fact that an estimated 2,000 farmers have committed suicide in Andhra Pradesh since the Congress Government was sworn in hasn't helped the UPA's image. The Andhra Pradesh Government is now resorting to measures like exporting drought-hit farmers to Uganda and Kenya.

There is a lot of sound and fury and debate on the aam aadmi, but backward rather than forward movement, says S. Krishnan, secretary, Consumer Coordination Council, the apex body of all consumer organisations in the country. "The burden on the consumer has increased in the past six months. Inefficiencies of oil companies are passed on to consumers," he says. "New cesses are imposed but collected and utilised in a non-transparent manner."

  PICTURE SPEAK
POST SCRIPT: Congress won on the "aam aadmi" plank and can't forsake it

What is bothering consumer groups is that after an 8 per cent service tax-passed on to the consumer-and a 2 per cent education cess, there is a whole bunch of new cesses proposed: a "green" cess to fund environmental protection; a one-time television cess; a "job" cess to fund the proposed national employment guarantee scheme and perhaps even a health cess. For Delhiites, a drastic hike in water tariff and parking fees could be augmented by a professional tax on salaried workers and a tax on dual car ownership.

Fresh burdens on the salaried middle-class bother only those who have to seek urban votes. But with three assembly elections round the corner, the rural voter is on top of the mind at the moment. The RJD, facing elections in Bihar early next year, is most disturbed by the diesel and LPG price hikes. (Singh says it was initially stalled by his party but later railroaded through by the finance minister). But he is even more miffed by the Planning Commission's alleged shilly-shallying on the National Employment Guarantee bill. The bill provides 100 days of guaranteed employment to one adult from every family with the Centre bearing the bulk of the estimated Rs 40,000 crore cost and Singh is determined to introduce the bill in the winter session. He brushes aside suggestions that the Parliament limit itself to creating an enabling legal framework for the state governments, which can then decide whether to proceed with the proposed act or not. "Commitment to the poor comes from the heart, not from studying abroad," says Singh, taking a pot shot at "foreign-educated economists". Where is the justification for charging 12 per cent interest on livelihood loans when charging 7 per cent for car loans, he asks.

   ALLIES' AGONY
PETRO PRICES: The hike in the prices of LPG, diesel and petrol has not gone down well with the allies, especially the RJD and DMK, and UPA's conscience keeper, the Left.

SLOW ACT: The alleged dilly-dallying on the National Employment Guarantee scheme is a sore point.

CESS POOL: Lower PF interest rate and proposed taxes are other issues.

FARMERS' SUICIDES: It hasn't helped the UPA that farmers' deaths in Andhra Pradesh have risen to 2,000 since the Congress Government took over.

The Left has no use for the Centre's arguments on the petro-price hike. "We do not believe that there is no option other than passing the burden on to the consumer because of the rise in international prices," says CPI(M) leader and Rajya Sabha member Nilotpal Basu. "We have given detailed figures to them (UPA) to show that the profits of private refining firms are maintained despite the fluctuations in the international market. And where is the justification for maintaining a cost-plus regime?" On the pf interest rate, he points out: "This is the only social security instrument we have at a time when inflation is higher than the bank rate. There is no other safety net."

On the hike in prices of petro-products, unlike the RJD which has confined itself to verbal protest, both the Left and the DMK have taken to the streets. "We feel the burden should not be passed on to the common man and the Government should have control over the prices of the oil products," says K. Ponmudi, DMK executive committee member. "LPG prices must be brought down with the Government taking the burden of subsidy."

Ambika Soni, Congress general secretary and member of the UPA coordination council, has a different take on the issue. Allies like the RJD are new to the business of coalition, she says, and they have their own constituencies to address. She insists the Government hasn't budged from its commitment to the aam aadmi and says a new agriculture policy to facilitate easy credit for farmers and a host of other measures like universalisation of education, right to information and employment guarantee are on the anvil.

Well, it was not long before India undid the "shining" arrogance of a slogan. Change the script or live up to it-that is the Congress option now.

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CURRENT ISSUE
DECEMBER 06, 2004
 IN THIS ISSUE
COVER STORY

AMBANI VS AMBANI
 
OTHER STORIES
 

The Sacred And The Political

Quelling Fires Of Discontent

Death of a Slogan

Learning Curve

Bound To That Midnight

Talk The Walk

Price of Freedom

Bolt From The Blue

It's All Business

A Green Promise

Living On The Edge

Losing the Race

Well-Oiled Machine

Big Fat Weddings

Storm in a Teahouse

Poison Ivies

 
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