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PM picks on prices and freebies

New Delhi, Aug. 21: Prime Minister Manmohan Singh stressed that “taming” inflation was his government’s top priority and expressed confidence that the situation would be brought under control.

“Let there be no doubt on that score,” Singh told the AICC session here.

Outlining the UPA government’s priorities in his address, he said: “Our government is committed to pursuing higher economic growth that is at the same time more equitable and people-centred.”

Listing the reasons for his confidence about reining in the price rise, the Prime Minister said the country had adequate foreign exchange reserves, its balance of payments was in surplus in the current account, food stocks were comfortable and the monsoon had revived well.

Sharing the average Congressman’s apprehension that the Opposition could start a campaign on inflation, Singh blamed the NDA government for bringing things to such a pass.

“The last time our party was in government, in the mid-1990s, we left behind a healthy and robust economy with an unprecedented and a historic record of over 7 per cent rate of economic growth for three years, rising foreign exchange reserves, declining external debt and a modest rate of inflation. There was an air of optimism and the nation was looking forward to a further acceleration of growth. Regrettably, in subsequent years, the economy slowed down and the fruits of growth were unevenly distributed.”

The Prime Minister steered clear of speaking about the party organisation and used the language of an academic-cum-technocrat, but there were enough political messages buried in his statements.

When he spoke of education, he made it a point to mention the “damage” inflicted on the country by the NDA government. The statement is being seen as a move to clear the air on alleged differences between him and human resource minister Arjun Singh over the latter’s “detoxification” agenda.

“Our education policy must focus on making ours a fully literate country with a modern and world class educational system that makes India a superpower of the knowledge economy. A major issue we are tackling is to reverse the ideological and bureaucratic onslaught on education which was one of the major damages inflicted on the nation by the previous government. The Congress party has always stood for liberal values and principles and believed in academic freedom, institutional autonomy, social justice and intellectual excellence as the guiding principles of educational policy.”

In an oblique criticism of Sushil Kumar Shinde’s announcement of free power to farmers in the run-up to the Maharashtra polls, Singh urged Congress chief ministers to exercise fiscal discipline and not indulge in “competitive populism”.

“The Fiscal Responsibility Act which was passed with our support and which has been notified by our government, enjoins us to give due regard to our fiscal and financial management. We have to manage the volume and structure of our debt with an eye on sustainability. This is not an easy task. Hard decisions will have to be taken by governments at all levels and all political parties must understand this. I urge Congress chief ministers to show particular discipline in this regard, setting an example for all states,” he said.

The Prime Minister described the National Advisory Council — headed by Sonia Gandhi to oversee the implementation of the common minimum programme — as the “bridge between civil society and government” and urged the Congress ranks to “support, supplement and strengthen” the council at every level where “governments and governmental institutions interact with civil society”.

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