Saturday, August 09, 2008
When this government came to power some four years ago it increased rates of Value Added Taxes, added taxes on a wide range of services and added various types of cess increasing Consumer Price Inflation. Luck was on its side. Low interest rates worldwide with huge liquidity prompted growth rates of over 8% with ministers taking undue credit. Then came the explosion in commodity prices this year and inflation has gone to over 12%. The Reserve Bank has raised rates to 9% and increased the Cash Reserve Ratio of banks to reduce money supply. The double whammy of increased prices and mortgage repayments has people gasping. The government has done its bit too. It is taking delivery of three wide bodied Boeing planes customised for ultimate comfort at the cost of 9.37 billion rupees. One for the President, one for the Prime Minister and one, probably, for the little boys to go and play anywhere in the world. While they keep screaming how their hearts bleed for the aam aadmi they could hardly show greater disdain for the people. So what if the people cannot afford roti and urad dal, let them eat cake. At least Marie was beautiful. This lot make you cringe.
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