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New Delhi, March 3: Petrol price does not discriminate between the rich and the poor but it does follow a political caste system that pits our hike against your hike.
Furore over the fuel price increase disrupted a part of the proceedings in Parliament today but more than mirroring the plight of those paying more, the ruckus painted a picture of economic amnesia, political compulsions and diversity within unity.
The governments unwavering stand on the petroleum price increase compelled the Opposition to abandon its disruptive tactics in Parliament, although slanging matches between the Congress and the BJP over oil pricing continued. The Lok Sabha functioned normally after two adjournments.
While the BJP and other Opposition parties described the move to increase duty on petroleum products as insensitive, anti-poor and inflationary, the Congress justified it as a compulsion created by global economic realities and long-term fiscal prudence.
There was no hint of a rollback. Later in the evening, revenue secretary Sunil Mitra also ruled out a rollback. No, what rollback? he said, asked whether the increase in fuel prices would be scaled back.
The Congress MPs were armed with statistics given by finance minister Pranab Mukherjee, who had explained to them just before Parliament met today that sustaining 8 per cent growth wouldnt be possible without mopping up additional resources. He pointed out that the stimulus package and high expenditure on welfare schemes had deepened the fiscal deficit, which had to be contained.
According to the governments data, the NDA raised the price of kerosene — dubbed the fuel of the poor — by 258 per cent between 1996 and 2004, while the UPA raised it by only 2 per cent between 2004 and 2010. (See chart)
The increases, the Congress claimed, were smaller despite global crude oil prices fluctuating between $36 and $73 a barrel during the UPAs term, compared with $18 and $36 during the NDAs regime.
The government will have to levy other taxes if the petroleum price hike is withdrawn. Money has to be generated after all. If the Opposition parties view the budget in totality, they will not protest against the hike, a cabinet minister said.
No one needs to teach the BJP its economics. But the party is going through an upheaval and, in crises, loud politics always has more appeal than prudent economics. A new BJP leadership — both in the House and outside — is still finding its feet and is more keen to be associated with a secular issue like price than the parivars traditional planks.
After having pitched the price card high but keen to wear the hat of a responsible Opposition, the BJP has now adopted a disrupt-and-debate strategy for the budget session. The half-way house is also intended at pleasing the Left and the Samajwadi Party and not lose the initiative the BJP took to forge Opposition unity.
Whether the unity balloon stays afloat will be seen when the Womens Reservation Bill comes up for consideration on March 8. The Samajwadis have been opposed to the move, while the BJP and Left have committed their unequivocal support.
The disrupt-and-debate strategy came into play today when the Lok Sabha and the Rajya Sabha began discussing the motion of thanks to the Presidents address. The address, delivered on the first day of a years first session, is considered the governments key policy statement and offers the Opposition a chance to dissect the priorities. Conventional political wisdom has it that an Opposition stalls a debate on this speech at its peril.
The BJP, supported by the Left, Samajwadis and the Rashtriya Janata Dal, stalled proceedings in the first half of the day but allowed them to be resumed after lunch.
In between, the BJPs Sushma Swaraj and Arun Jaitley, the Opposition leaders in the Lok Sabha and the Rajya Sabha respectively, mustered their skills to achieve two seemingly irreconcilable objectives. First, they had to convince the Left why limited disruption was necessary, and then they had to persuade Samajwadi leader Mulayam Singh Yadav on the folly of continuous derailments.
We will try and salvage our reputation as a responsible Opposition without coming across as the governments appendage, a BJP source said.
Yesterday, Left floor leaders Basudeb Acharya (CPM) and Gurudas Dasgupta (CPI) informed Sushma they wanted the House to function normally. It is the Prime Ministers day. We must not pass up an opportunity to corner him (by letting him leave because of a stalled House), Acharya told Sushma. But Mulayam was firm the House would not run.
This morning, the BJP leaders decided on the dual strategy.
The BJPs decision to allow Parliament to function today was also a reflection of its realisation that the agitation was untenable.
The Congress leadership is in a much better position to handle the pressure of allies as there is no alternative government possible in this Lok Sabha, and the BJP remains a problem for parties like the Rashtriya Janata Dal and the Samajwadis who survive on Muslim votes.
Even the Trinamul Congress or the Left cannot afford to drift towards the BJP as their politics at this juncture is Bengal-centric and Muslim votes are crucial. The DMK cannot antagonise the Congress as rival ADMK is waiting for a chance to step in.
In fact, the Congress is hoping that the Opposition onslaught would turn restive allies around and make the UPA more cohesive.
Trinamul remains unconvinced about the economic need for the fuel price hike after a meeting with finance minister Mukherjee today but will not embarass the government in Parliament, party sources said.
Mamata Banerjees party will continue to distance itself from Mukherjees budget announcement of hikes in petrol and diesel prices, sources said. But Trinamul also communicated to Mukherjee that it would not support any cut motion against the budget.
Other sources felt that the Trinamuls objections were intended more at denying the Left a chance to claim that the Bengal UPA ally kept silent.
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